The International Telephone And Telegraph Company

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1. Introduction Big companies such as Multinational Enterprises (MNEs) is characteristic of the capitalist economic system which have a role as non-state actors. However, it is shown to have an important role and can determine the direction of the economy of a country that these companies invested. Multinational enterprises have developed since the early 19th century. In the 20th century, with the growth of information technology and transport, causing the expansion of international trade is increasing. Attributed to the establishment of branches in different countries to produce products which looks similar products manufactured in the home country in all respects and began to move the capital from the United States to invest in…show more content…
Moreover, these companies are also ready to move their production bases to another country or to layoffs and downsizing their companies if their business are unsuccessful. It causes tremendous equality between the companies and the countries that have been investing. Despite the advantages of an investment may entail technology transfer, production and employment in the country, it has the effect of trade liberalization on that companies can easily withdraw the investment. Including, technology transfer in production to those subsidiaries have been inherited by these companies are not absolutely perfectly. It could be that the relationship between the parent company and subsidiaries is the parent company control and plays a major role over the subsidiaries and based on the pursuit of profit as much as possible. This essay will provide the examples of two big companies which focus on multinational enterprises in different continents which have high turnover but on the other hand, there are problems that arise from the operation of these companies, as well as the impact on third parties that may lead to reduce the credibility of companies. The samples have to be taken into consideration and analysis in perspective of foreign investors, civil society actors and the reaction of government actors as well. 2. What is Multinational Enterprises (MNEs)? Organisation for Economic Co-operation and
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