Impact of Transnational Corporations on NICs

Impact of Transnational Corporations on NICs Introduction What are TNCs? Trans National Corporations (TNCs) are companies which operate in at least 2 countries. Its organization is very hierarchical with the headquarters as well as research development often located in the mother country. Production centers tend to be host countries. When organization becomes more worldwide regional headquarters and regional research development will widen in the manufacturing countries. This gives TNCs many advantages, such as right of entry to the global market, cheap labor, low production costs, consequently greater profits. The headquarters of these remains in its mother country, usually one of the most developed countries in the world, like USA UK. Their established factories throughout the world, which either make parts or entire finished goods for the company to sell on the global market. Among all the TNCs in the world, Most of them are oil companies such as Exxon (Esso) BP, car manufacturing companies (for instance Toyota, Ford, Nissan and Volkswagen). Other familiar companies like Sony, IBM and Coca-Cola are also defined as being TNCs. Trance National Corporations are established globally for their advantages, to earn more profits. They bring with them both positive and negative impacts for the country that plays host to them. Top 10 TNCs in 2009 TNCs manufacturing high-tech Scientific instructions, pharmaceuticals microelectronics, (Mitsubishi, Sony, Glaxo- Smithkleine) Large volume consumer goods Tyres, Motor vehicles, televisions other electronic products (Toyota, Daimler, Ford, Volkswagen, General Motors) 3) Mass produced consumer goods cigarettes, beverages, breakfast cereals, cosmetics branded goods (Mars, Uniliever, Nestle, Kraft foods) 4) Service Banking/ insurance, freight transport, advertising, hotel chains and fast food outlets (IN group, AXA, citigroup, HSBC, Allianz, Dexia) TNCs organize manage economic activities in different regions develop trade inside between units of the similar corporation in different regions. It means they can often control the terms of trade and can diminish the effect of quota boundaries on the movement of products, go around trade tariffs. Advantages to TNCs TNCs have the ability to take advantage of spatial differences in factors of production. They can utilize differences in the accessibility of labor, capital, and building or land costs. e.g. 2002 Dyson moved its production from a plant in Malmesbury, Wiltshire to Malayasia to take advantage of cheap labor. Dyson did retain several hundred jobs in Wiltshire for RD saving of 30% in production costs0 They can locate to take advantage of government policies such as lower taxes, subsidies and grants and less strict legislation on employment and pollution. They can get round trade barriers by locating production within the market where they want to sell. E.g. Nissan in Sunderland, Toyota in Derby. Japanese car firms have been attracted to locations in the EU because of quota restrictions on the import of Japanese made vehicles into European manufacturers and gain entry to the European market What are NICs? Country that has within recent decades experienced a get through into rapid productivity growth, rapid export oriented economic growth, quick industrialization farther a high amount of investment and assets formation largely funded from local savings, and a high tendency to export, with end user durables and machinery accounting for a large share of exports. Superior examples are South Korea, Hong Kong, Taiwan, and Singapore. These countries invest capital and production facilities in other developing countries like China, Vietnam, India, and some countries in South East Asia. Within 20th century lots of East Asia countries were industrialized such as South Koria, Taiwan, Philippines, Singapore, Thailand, and Japan. These states are called as Newly Industrialized Countries or (NICs). They are also sometimes referred to as Tiger Economies because of the growth rate of these counties. The governments of NICs controlled over industrial development motivated industries to export manufactured products to abrade such as more developed states. The exports profits were re-invested in the local economy. Local businesses did grow; wages rose workers did spend their new assets to buy domestic goods and services thus motivating further growth. This type of rotation or knock-on effect, in which money paid out by businesses is reinvested inside the country, is often called the multiplier effect. NICs have been being succeeded for the last 30 years. That successfulness of these economies has contributed to the turn down of manufacturing industries in MEDCs like UK. Industries struggled to compete with the NICs competition, because their production cost and wages were very low. Characteristics of NICs Countries whorled market exporter share is increasing, they often copying existing products then reproducing for a much low price. Continues growth in the production sector that results for more exports continues increasing of GDP. Generally NICs Can be developed by three stagers, thats traditional society to a developed country society. Three stagers are explained below. The time frame of whole process can be minimum 30 years. Traditional society: There are more labors work under the industry, its labor oriented. Concentrating on small cottage-style traditional industries, concentrated on local raw materials. Instance could include food processing, textile manufacture Most of the time, lots of people are still work in the primary sector, doing things include farming. Using primary technologies most of the people have less money. Import the products what they want, that indicate county is not producing what they actually needed addicted to import products. Import substitution industries: The country does promote its own industries. Newly started companies imitate products from well known market giants and then produce them for low price. The government operates tariff barrios for the products are being imported trades that make similar products. The purpose of that is protecting their own domestic companies whilst they grow. Instance industries are computer manufacture, car manufacture, electronic goods and other electrical goods, like hi-fis. Export orientated industries: The new companies established in their own country they are unleashed upon the global market. Industries are being capital intensive, using high technology aimed at earning a big profit. The gross domestic product (GDP) of the country starts to increase, mostly growing at well over 5% per year which is a wonderful rate. Now the country has been being an NIC. How do TNCs affect to the NICs economy their environment? Investment: Advantages: The companies earn, invest, bring foreign currency into the country. Though most of their earnings come back to the companys country of host, all the remunerations do come to the local economy Disadvantages: The salaries paid to host country workers are very low and a lot of companies have been accused of exploiting the workforce before benefiting it. There are often tax incentives for these TNCs to locate in countries in the Developing World. Due to the fact that they get lots of their profits out of the country that says the real economic benefit to the country could be limited. Technology: Advantages: TNCs help the development of the NICs by bringing in latest technology and new knowledge that the host country doesnt use. Disadvantages: Unless the company actively participates in a program to educate local companies in the new technologies, the countrys industry will not really benefit. TNCs are not going to share too much information. If the local industry competition will increase because of new knowledge TNCs have to compete even with the local companies. Transport: Advantages: The new TNCs mostly help to develop transport links around the company area. Disadvantages: Mostly serve only the direct roads, rails that needs of the company, not the surrounding area as well. Employment: Advantages: They create jobs opportunities for the NICs domestic employees. Disadvantages: Most of the jobs opportunities are highly skilled so the company uses their own people to do the work. Because of the technological environment of these companies. Remain less jobs opportunities. Urbanization -launching a TNC in a city in NIC does encourage urbanization. Young migrant workers gather to the city. It influence to the rural communities their development Environment/Safety: Advantages: Companies bring with them the environmental friendly technologies expertise to decrees harmful pollution establish a safe working environment. Disadvantages: a lot of TNCs have very bad history on pollution and worker safety. They have been complained of trying to cut both safety of working environment and environmental pollution in order to keep costs down. . Overall impact to the Economic growth Development of NICs can be potentially promoted by transnational corporations through their activities that generate economic growth. Some evidence exists that the foreign exchange and foreign direct investment that TNCs provide can improve the performance of the economy of the NICs which they operate in. The process of economic growth is impacted by the TNCs through influencing the quality and amount of new capital formation, transfer of soft and hard technology, expansion of trade opportunities and the development of human resources. Further, Such as Province of China, Taiwan, and South Korea demonstrate, that under some conditions economic growth can foster social development. For example in Taiwan, enormous growth of economy has been combined with increased educational levels, longer life spans, improved health conditions, advanced housing conditions, political liberalization and enhanced civil liberties. Theoretically TNCs can uplift the development of the NICs society by fostering economic growth; practically this relationship exists for two reasons. Mainly, in the host countries it is not clear whether transnational corporations are really responsible for the growth of economy. In the most recent two notable cases related to economic transformation, Taiwan and South Korea, a negligible role was played by transnational corporations. Further, TNCs actually have the ability to prevent NICs local economic growth by running local entrepreneurs out of the business zone, along with the importing of main goods and services, reducing large amounts of the profits from their local NICs, and transferring royalties and fees to the main companies which are located away from the host economy. Secondly, even if the economy of the NIC is not developing, there is a tenuous relationship between social development and economic growth. Even though there is an global economic growth annually, it is yet hard to prevent the problems of poverty, unemployment, inequality in wealth, and such other issues of social malaise. For example In Cote dIvoire, from 1960 to 1975 the TNCs could have helped to foster aggregate the growth of the economy, they did only a very little to uplift the development of the society: increase in unemployment, income distribution expanded and nationals increasingly started losing the control over the industrial capacities of the country. In some, under some circumstances TNCs can act as the engines of growth of economy, the power of economy is very rarely harnessed to the achievement of development. Overall impact to the Environment Transnational corporations can have a negative impact through a demotion of resources in the environment to the social development. And over the past ten years such entities had been responsible for environmental disasters. For an example, Union Carbide in Bhopal, India, Exxons Valdez spill off Alaska, and Texaco in Ecuador. To a group of environmental problems TNCs have been linked. Fifty percent of the green house emissions are generated by them, in which they are responsible for global warming. Furthermore they are also the users of ozone-depleting chlorofluorocarbons (CFCs) and they are also producers of CFCs. Explaining further, transnational corporations are responsible for the pollution of land, air, wetlands, water and the oceans. Ultimately, through their mining activities and commercial logging, there is a contribution to deforestation by the TNC. For example in the mid-1980s, there was a control of 90per cent of the logging by the foreign corporations in Gabon and in Congo it was 77 per cent. As a result of such mining and logging negative effects such as flooding, loss of topsoil rapid run-off of rain have occurred; Farmers are economically not in a rich status to buy the land from forest owners and usually TNCs dont internalize such social costs. Hence such negative externalities cannot be p revented. The relationship between TNCs and the environment is massively complex even though transnational corporations can definitely obstruct social development through their environmental practices .But yet the Critics dont mention that consumption of environmental resources should be abstained by transnational corporations, instead they should promote sustainable growth and development via their activities. In the meantime there is a practice by the TNCs to follow demoted environmental standards in the developing countries with comparison to the developed countries; and it is found with evidence that environmental practices are more responsible in developing countries than in local firms functioning in such countries. Nevertheless, critics emphasize that, as a result of having better resources they have better access to research and development, It is the responsibility of the TNCs to promote environmentally sustainable practices and they bare that responsibility. Some companies undergoing so much of pressure have started to follow more environmentally responsible policies. Example, a maligned polluter named Dow Chemical, had to establish one-and-a-half days each session with the environmentalists brief senior management quarterly. The salary of the manager was pegged to the goals of the environment, and a toxic release of 32 per cent between 1988 and 1991. Further some laudable environmental practices were also implemented by the IBM including rewards for the employees for technical innovations which helped to comply with the environmental standards. Finally 18 environmental awards were won by ATT since 1990. On the other hand, expect these three companies majority pillage to consume environmental resources from the countries that are developing and they consume these environmental resources in a destructive and unsuitable manner. practices which certainly hamper prospects for social development. Some of the companies that involves in issues related to the environment are General Electric and DuPont, for example, Dupont was responsible for toxic chemical releases in 254 million pounds during the period of 1991 in the United States , and this has led to minimize such practices that destroys environment. e.g. In December 1984, one of the worlds worst industrial disasters occurred in a Union Carbide plant in Bhopal, India. Poisonous gas leaked from a negligently maintained chemical factory killing 3,000 and injuring over 200,000. See Reinhold (1985), Lueck (1985) and Everest (1985). An Exxon ship called the Valdez crashed off the coast of Alaska, spilling thousands of gallons of oil into the ocean and killing large amounts of marine life. The company untruthfully maintained that the oil spill had caused only minor damage and that the oil spill had been satisfactorily neutralized (de George, op. cit., p. 5). Conclusion -s-cool.co.uk. (). Geography GCSE: Industry. Newly industrialised countries: South Korea. (), . http://www.s-cool.co.uk/gcse/geography/industry/industry-in-the-developing-world.html

Salman Rushdie

Sir Ahmed Salman Rushdie is unarguably one of the most controversial contemporary English novelist. His novelistic sensibility is individualistic and entrepreneurial, making him a literary risk-taker even at the age of 58. He hates all orthodoxies-religious as well as literary. His literary iconoclasm has won him a distinguished place in pantheons of worlds contemporary writers. Whereas his religious iconoclasm has made him an infamous figure amongst the Muslims worldwide. He stands for free speech in writings. His novels are often political statements. ‘The Satanic Verses’ brought this Indian born Muslim uthor violent ire from Muslim world. The novel was interpreted as blasphemous and an insult to prophet Muhammad. Overnight Rushdie became an iconoclast for his blasphemy. It was the first instant in modern times that a government had issued a death sentence ‘ fatwa, in Islamic fashion’ to a foreign national. And the censorship on this novel by the Islamic c ountries caused much international diplomatic crisis. The Western and the Muslim world was now culturally divided. The core value of ‘ freedom of expression ‘ was pitted against the ‘intolerance for insult to Prophet. Muhammad’ , the messiah of Muslims. The novels of Salman Rushdie evoked much controversy even before The Satanic Verses. Rushdie as a writer played the role of an ‘antagonist to the state. ’ Many have called Rushdie an intellectual who criticizes or ridicules nearly everything. It is this intellectual daring that offends and embitters people. His books attack and revile the Gandhis and modern India, the leadership in Pakistan,American foreign policy,fundamentalist Islam and Britain et al . He critisizes the West for their social, cultural and political colonialism. His ttacks come with his charecteristic non-chalance, typical of him. If Rushdies views are to be interpreted, ‘ insults’ are justified as a part of artistic freedom which should ensure liberty to ‘offend’ cherished beliefs. Rushdie is a self-confessed aposta te. This further provokes the ire of Muslim clerics. This essay begins by assuming that ‘intellectualism’ is not an end in itself and therefore should be sensitized to the needs of global audience. Reason in art should not evoke passions, else, it shall defeat it’s own purpose. An artists reason should be in harmony with his own passion for art. In ‘Kahlil Gibran’s’ words , a man’s reason and passion are the rudder and sails of the seafaring soul. If either of them is broken he can but toss and drift or be at standstill in mid-seas. There is even a school of thought advocating ‘Art for art’s sake’. Politicizing art has it’s own perils . A political statement made through a literary or artistic work in truth further divides the society. History is replete with examples of civil unrest caused when artist makes a political statement through his work of art. Hence, the people are ‘right to be offended’ by Rushdies novels. However, Rushdies novels have often offended people because of misinterpretation or rumors. He has been considered to be siding with the West instead of the Islamic Orientalists. The language of the book ‘ English’ was a matter controversy. His novels have been considered to be based upon flights of literary imagination, subjectivity and unscientific facts. Hence there have been numerous complaints about the novels inaccuracies; lack of critical appraisals and historical research. The Muslim world limits free speech as a part of it’s religious ethics and ethos. They are not yet prepared for he concept of free speech and blasphemy against religion. The gulf between the Christian West and Muslim Middle-East remains and has Historical roots mentioned in the holy books like Bible and Qur’an. Hence any artistic work by an individual iconoclast might be considered as a war propaganda of America and Britain against Islam. What adds fuel to this fire is that despit e the passionate protests by the Muslim world many Western governments didn’t ban The Satanic Verses. The Western media widened the gulf between the Muslim protesters and Rushdies supporters. Far from peace making efforts it spiced the affair. Rushdie earned $ 2 million USD in the first year of publication of ‘The Satanic Verses’. The ‘ Fatwa’ ,bans and international protests only gave Rushdie more publicity. The public got the much wanted spice. The West has become immune to taboo and sacrilege. Blasphemy is nothing new. Many controversial and dangerous works of art are freely available in the West. Blasphemy against Jesus doesn’t shock the West anymore. The Nazi holocaust portrayed in many films sells defying controversies. There is much cynicism in the West. Perhaps a consequence of too much progress with materialism. Consequentially, there is utter disregard to human sensitivities. The West just can not understand the cultural apparatus in which the Muslims are brought up. Islam is most sacred to them. Satanic Verses thus caused hurt and anger to the Muslims. The media too turned away from the Muslims during and after the Rushdie Affair. Muslims felt estranged and isolated. The West gauges other societies with their ability to assimilate into their own society. Muslims were portrayed as narrow- minded ‘fanatics’ and ‘fundamentalists’ because they were ‘anti-democratic’ and ‘anti- liberal’. After the Rushdie Affair the anti-Islamic sentiment was reborn in the West. The anti-Islamic tradition has been depicted in Western literature even in the Medieval period. Rushdie offended the Muslims with direct derogatory references to Prophet Mohammad and his companions. The texts in his novel ‘ The Satanic references ‘ cast aspersion on the chastity of the supremely revered prophet Muhammad. He rebukes the Muslim society to the extent of calling it Jahil ( Ignorant). Western critiques use their own yardsticks to measure Muslim reactions and literary attacks on them. Muslims have been ontinually offended by Rushdie. Adding insult to injury his publishing company, Random House, announced publishing a new paperback edition of The Satanic Verses on April the 7th 1998; the day Muslims celebrate Eid Ul-Adha, the holiest day of the Islamic calendar ( Abdul Adil's article ‘Rushdie Provokes Muslims', The Muslim News, 24th April 1998). Rushdies adventures with the pen don’t end up with ‘The Satanic Verses’. He paints a dismal and grotesque picture of Pakistan. Many orthodox patriotic Pakistani Muslims would protest it. He describes Pakistan as being caught between bscurity and march towards modernism. In the novel ‘Shame’ he makes a mockery of the political turmoil, military coups, corruption and censorship on art in Pakistan. In his characteristic style he chooses the characters of his novels based upon real life political figures. He writes political satires that insensitively ridicule these political figures and the political establishments themselves. In ‘The Moor’s Last Sigh’ Salman Rushdie lashes at Hindu fanaticism. Rushdies ‘Hindu fanatic character’ is convinced of eliminating Muslims from India. Bombay bursts into flames of communal riots. He comments Bombay is no more the city of his youth days – the bustling metropolis. He now describes it as a city of religious fanatics and mafia dons. The book is about the countries departing from harmless and innocent way of life. In the novel the downfall of a family portrays the downfall of a nation. The Rushdie compares Hindu fundamentalism with the Nazi racist ideology justifying minority genocide. Rise in Hindu fervor, popularly known as ‘the saffron surge’ can be considered as a representation of a Hindu political stance. His comparative analysis with Nazism in World War –2 Germany is taking things a little bit too far. This might offend many Hindu conservatives. In this way Rushdie exaggerates the spurt in Hindu activism to the extent of being destructive to India as a secular nation. In ‘Midnight’s Children’ he accuses Indira Gandhi, the Prime Minister of India of assuring the Hindu majority vote by appropriating the images of Hindu Goddesses. He accuses right wing Hindu’s of distorting History and accuses them of taking revenge from History. He criticizes all political parties in India on some or the other ground and spares none. Conclusion : Thus, it is reasonable to conclude that the people are right in being offended by Rushdies novels. He doesn’t censor his own flamboyant spirit as a writer. His personal dislikes bias his literary works. Iconoclasm should be ventured if it is tolerable. Rushdies daring intellectual attacks in his literary works reflect his insensitivity towards peoples core beliefs. What offends people even more is that he doesn’t regret the damage that people assume he causes. Perhaps he is too ahead of the people in time. A fact that he himself doesn’t realize. The gulf between the liberal West and the predominantly Oriental. East can’t be bridged overnight. Especially not with a few strokes of the pen. In an ideological conflict between these two rival parties other groups with vested interests make gains. For example : the Western media, the oil companies etc. 9/11 and it’s aftermath have heightened the tension and sensitivity in the relations between the West and the Muslim world. In this scenario his novels could be even more offensive. They could act as catalysts and trigger violent protests. The 9/11 terrorist attack has once again opened the wounds and the scars left by crusades in the course of History. Rushdie is anti-establishment. He has to take this stance as he is by nature against all orthodoxies. His works are political statements in themselves. The political satires he writes win him political ire. He makes rivals not only out of individuals and groups but also out of political establishments. Even the purpose of his intellectual activity, journey and destination are unknown. Sheer intellectual activity leads nowhere. Intellect is like a knife that cuts both ways. It hurts both the parties. The sea of life can be crossed only in an arc of faith.

The Great Playwright s Life Story - 2415 Words

Before the relatively short life of Lorraine Hansberry tragically ended, the African-American playwright distinguished herself in American theatre and literature as she creatively and unknowingly challenged the views of African-American life, among other inescapable issues of the nation and the world, on the theatrical stage. The great playwright’s life story began on May 19, 1930. Although born during a time of hardship introduced by the Great Depression, Hansberry grew up rather comfortably in a middle-class African-American family from the Southside of Chicago (â€Å"Lorraine†). Her father, Carl Augustus Hansberry, not only established Lake Street Bank, one of the first Chicago banks to solicit black patronage, but also established himself as a successful real-estate businessman (Jacobus, â€Å"Lorraine† 1223). Despite the middle-class status, the family experienced racial tension, especially when the family bought and moved into a home in a racially restricte d covenant—which later resulted in the Hansberry vs. Lee U.S. Supreme Court case that influenced Hansberry’s writing (â€Å"Lorraine†). After graduating Englewood High School in Chicago in 1948, Lorraine Hansberry left for college to pursue her interest in visual art (â€Å"Lorraine†). She attended the University of Wisconsin, the Art Institute of Chicago, and â€Å"numerous other schools before moving to New York† in 1950 (Jacobus, â€Å"Lorraine† 1223). 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Taking a Look at Federalism - 537 Words

Federalism Federalism is a form of government that distributes power between central and several regional governments. Since The United States of America adopted federalism to be their way of government, it has gone through a major change. With all the changes it has gone through, the main tactics are still in place. The city of Ripon shows that we are apart of federalism by the city council meetings and by making local decisions that do not have an affect on the national and state governments. The concept of federalism in the United States of America was brought during the time of writing the constitution. To fix the defects of The Articles of Confederation, George Washington and many other historical impactors were sent to the constitutional convention. It was then at that convention that the constitution formed. The framers rejected many types of government, but they finally agreed on one, federalism. After working on the constitution they released it out into the public. 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This reminded America of the main point now of the 10th amendment that because the states are created under the the federal government, it should work for the states, andRead MoreFreedom Of Speech : Positive And Negative Impact On The World1251 Words   |  6 Pagesstanding and the political system was unbalanced. Many civilians were left unemployed, hungry, homeless, and inflation. This created a chaotic, hostile living environment. There were many deaths and death camps that forced many into slave labor. Federalism Federalism is a form of government that is divided between the local government and federal government. This government was created to structure the government and divide powers equally. There are three branches the judicial, legislative and executiveRead MoreThe Constitution Of The United States Of America1620 Words   |  7 Pageson the to the unicameral legislature that integrated too much power in one institution. 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The term marble cake federalism applies due to both the states and the federal government having claim to dealing with marijuana, so a cooperation betweenRead MoreChapter Eight Of The American Era880 Words   |  4 Pagespolitical reformation, and of course the loss of slave labor. In terms of political corruption, the Southern states were forced back into the union but were denied representation in the Union, and used political control to rob the states financially. Taking the votes of the newly freed blacks also created a tension with white and black relations that last to even today, commonly from the Ku Klux Klan. If anything, the attempt to create stability to the war-torn South ended up making things w orse in bothRead MoreThe United States Supreme Court Granted Certiorari973 Words   |  4 PagesThe United States Supreme Court granted certiorari in this case, because they look at the benefit of the redevelopment of the community as superior to that of a view individuals. When it comes down to the United States weighing the balance between a few people in society versus society at large, society would always win mainly because it involves a larger number of people. It s basically a decision in which the United States judged a situation and handles it in a way they believed to be what societyRead MoreFederalism And The Separation Of Powers1795 Words   |  8 Pages Federalism is a way of organizing a nation so that two or more levels of government have formal authority over the same area and people, ensuring that one does not become too powerful and aids in the separation of powers. Liberty is a state of freedom within a society from oppressive restrictions imposed by authority on one s way of life, behavior, or political views. Although these two political science terms are different, they correlate and interact with one another in the American Government