4.4 Global Industries and Companies

Overview

Theme 4 is the last set of four videos, covering three topics: the impact of MNCs (Multinational Corporations), Global Ethics, and the control of MNCs.
It serves as a summary for Theme 4 and ties back to Global Ethics covered in Theme 3.

Definition: Multinational Corporation (MNC) operates in multiple countries.
Positives:
- Creates jobs, leading to increased income.
- Introduction of higher skill levels and technology transfer, enhancing local standards.
- Potential positive impact on local businesses (suppliers, amenities, etc.).
- May lead to improved working conditions and ecological standards.
Negatives:
- Wage inflation for local businesses.
- Increased competition can negatively affect local firms.
- Cultural dilution due to the presence of MNCs.
- MNCs may not prioritize community and environmental care, especially outside their home country.

Addresses challenges unique to global operations.
Key Issues:
- Wage and Working Conditions: Whether paying lower wages in other countries is unethical if they are considered fair locally.
- Environment: Potential negative impacts such as emissions, waste disposal, and over-extraction of resources.
- Supply Chain Ethics: Issues including slave and child labor, and whether corporations are responsible for suppliers’ actions.

Reasons for control:
- To mitigate negative economic impacts and unethical behaviors.
- MNCs' potential political influence for benefits like tax breaks or access to resources.
Legal complexities arise in taxing and regulating MNCs due to differences in international laws.
Possible Measures:
- Pressure groups highlighting unethical practices.
- Utilizing social media for awareness and potential boycotts.
The goal is to maximize positive impacts while minimizing negative ones.

Theme 4’s coverage of global industries and MNCs provides necessary insights into their benefits and potential drawbacks.
It emphasizes the importance of ethical considerations and regulatory measures in global business operations.
Resources for Theme 1 through 4 available for exam preparation.