with using multinational corporations they can push other local businesses away. In the U.S we have popular stores like Nike but we do not assemble the products here. Instead we use different countries to make them. They get little to no profit from the goods and they work in bad conditions. Also majority of our products don't even come from the U.S anymore we pay other countries to do the dirty work.This is good and bad. From not making the any of the products we have other countries assemble keeps our pollution low. However, if we actually made the products here more jobs would be opened up and prices may lower because we now don't have to pay other countries.
Multinational businesses impose both a positive and negative impact. It allows businesses to go overseas for cheaper labor, but that at the same time creates less jobs in the United States having a negative effect on the economy. Less factory manufacturing cuts down of pollution emissions helping the environment. Nonetheless, it creates a better standard of living allowing more access of goods created by these multinational companies for people to buy which is great for the U.S. economy. On the other hand, these companies tend to exploit the workforce and are known for horrible working conditions. Companies such as Old Navy and Nike have had problems in the past. Lastly, the profits they make by going overseas for labor and such comes right back to the U.S through research, development, and other things. All being a positive to our economy.
Terrific analysis of the globalization conundrum. We benefit from it as consumers and entrepreneurs, but the labor force certainly is reduced in the process. It clearly is not going away, so the best we can do is to negotiate more advantageous trade deals and provide incentives for our local businesses.
One positive aspects of multinational business is that they have the ability to tap into low-labor markets, which can cut production costs. Another aspect is the cost of extracting raw material resources outside of the nations origin. In general, a multinational business helps give you a competitive edge over your opponents. As for the other side, one negative aspect of multinational business is the ethical concerns. Critics of multinational business say that setting up in a developing nation believe its consider predatory by nature and exploits the dependence of the local populace. Another aspect is the outsourcing of factory labor to developing nations damages the economy of the parent country which causes a scarcity of middle-class jobs. But the negative aspects can be reduced or even eliminated through good corporate governance. For example, the multinational businesses could opt to pay a slightly higher wage than the bare minimum to ensure humane living conditions for the workers, while still saving money on production costs.
AP Human Geography