Globalization is seen today as an “international process of global scale related to investments in financial markets which were determined by technical modernization”.Globalization is an unstoppable force,even though it may be only in its early phases; it is already intrinsic to the world economic system.We have to be with it, recognize its advantages and learn to manage it.Headlines around the world becoming one and more interconnected gave way to talk of balkanized financial markets, stalled trade talks.The reality has always been more nuanced. Globalization’s advance has never been inevitable or smooth. Since 1990s number of MNCs` (multinational corporation) have grown like an organic fruit, nearly tripled from 1990s. It becomes the dilemma of the undeveloped countries to get an MNC in their nation to jump up their investment and economy, but a company which lends its revenues in any developing nation have some aims and goals to accomplish. Remember one thing, profit is their main incentive rather than the wellness of that host country.
The economic development of any nation is traceable to so many factors among which investment is the major one.For an economy to grow, it must not be after profits like in a capitalist scheme. These promisers` of capitalism avoid fixed investment.Their basic purpose is to diminish their cost in the intermediate artifacts they produce, that is why most of the cooperation of developed nations are in Asia where labour laws are absent, cost is low and they can command their exploitative behavior.People always believed that their approaches and investments produced job vacancies in their land, but the fact is that the jobs in the global economy are not permanent, they depend on the willingness of the enterprise. Either they prepared proper space for them or made them entirely alone after their completion of goals.However, unemployment is still high in China and India where most of the world’s biggest co-operations are working.
The basic problems of addressing poverty and unemployment, the two crucial areas of concerns for the LDCs, would therefore not get directed from this sort of investment (foreign investment) from the MNCs. In effect, the already existing income inequality would accentuate further in the host country.Business operations by them are observed to be anti-ethical as they frequently resort to methods like aggressive advertising, rigging bids, price fixing, etc. Such practices would induce market distortions like united fruits company monopoly over banana republics. There are also instances of diverting high profit activities to their 100 percent owned subsidiaries from the simple majority equity stake affiliates.That effort (of MNCs`) is basically generated form of elderly rule and has now got a fresh face like proliferation of neo-liberalism and neo-colonialism.
It poses a question on the sovereignty of that country. If they don’t accept their deals, this produces short comings in the shape of low foreign investment and economic fluctuation. With the comings of foreign investment, they also get important features to that demanding country in the form of new norms, fashion and tradition in a way to make that country their market. Social, political and economic effect becomes so severe that dominating world culture, economic policies becomes the character of their state`s priorities to provide their people with those discomforts for their life and land.
These MNCs`are mainly the flag barriers of capitalism, but with the mask of democracy. It is an obvious wistful question mark on the character of multinational co-operations` that is, their behaviours are optimistic or pessimistic for undeveloped countries rather than their own.
