Multinational Corporations (MNCs)

"Continued MNC proliferation paradoxically diminishes the relative power of individual enterprises and reduces their effective autonomy" (Kline, 2006) 

Starting with this phrase is a good way to understand how powerful MNCs have become during last years. One MNC becomes powerful by its specific characteristics: can operate in several countries but it is centralized or managed fro headquarters in only one. The question is: Are MNCs menacing "making decision's processes" in countries where they arrive?

MNCs. Retrieved on february 17th from: http://library.thinkquest.org/05aug/01053/module/worldtoday.html

When we talk about the menace MNCs have on "making decision's processes", we talk about the political and economic power they have when arriving to a new country, so they can decide or at least push for decisions in order to obtain more profit, and that is one of the main criticisms that have been made to MNCs. Some people tend to see them as the savers (in less developed countries): it happens because normally, an arriving MNC starts to push for development in the region to operate in a proper way, so the MNC asumes the absence of state: Education, Human Rights, opportunities for people, Health (which are part of the state's job) became part of the MNCs obligations, so they act as the "new form of state".

In this place is when "no loyalty" arrives. MNCs start to get profits after giving development to the region. But then, when they have run out all resources, they relocate in other places that can give them more and more profits. They do not keep any stable relation with the regions they have been before. Mostly of the times, the isolated population goes back to poverty.

What is the pure truth is that MNCs will continue growing and increasing presence in almost all countries. Now, what they have to do is to adjuste some operation politics, because this system can not be sustainable for much time. MNCs should try to adapt the way how they relate to society, environment, economics, otherwise crisis would be the rule, not the exception.

References:

Kline, John M. 2006. "MNCs and Surrogate Sovereignty". Brown Journal of World Affairs 13, Iss: 1, pp. 123-133.