relating to MNCs’ exploitation of cheap labor eg, last year we heard of the Nike operations in Vietnam and the shocking conditions the workers had to tolerate, as well as the illegally low wages. I think these incidents are, however, only occasional, and although the Global South has long viewed MNCs with suspicion, this attitude has changed and is still changing. Now, many Global South countries are welcoming the penetration of MNCs, hoping that they will act as a catalyst in their country’s economic growth.Politics and Multinational CorporationsAnother concern regarding MNCs is their involvement in domestic political affairs of local or host countries.The text book names several cases such as IT&T in Chile; Dresser Industries in France; and OPEC. Often a problem exists because the host nation subsidiary of the MNC is involved in actions which are contradictory to the political wishes or policies of the home government.Sometimes, MNCs will lobby their home government for policies which back their disputes or facilitate their activities. One result of such lobbying is the promotion of free trade. MNCs have been a powerful influence in making governments reach agreements with each other to liberalize economic transactions in the global marketplace.MNCs play an unavoidably pivotal role on the world’s political stage. Although they are nongovernmental actors, they do have a strong influence on governments.MNCs’ InfluenceA question posed by the strength of MNCs is: Will MNCs erode state sovereignty?Joint ventures, interrelationships, and shared ownership make MNCs almost impossible to control from the level of one single state. New international mergers such as the one between Daimler-Benz of Germany and Chrysler Corporation in the US, as well as other similar mergers, are blurring the identity of such companies. Chrysler Corporation, which along with other very “American” companies is almost a sy...
