Discuss The Criticisms That Have Been Leveled Against MNCs in The Past Regarding Their Activities in Less

Discuss the criticisms that have been leveled against MNCs in the past regarding their
activities in less-developed countries. What counterarguments are there to those

criticisms?
Answer
In recent years, foreign direct investment through multinational corporations has increased
significantly in India and other developing countries. In recent years, it has been caused by
such a huge investment increase factor of multinational corporations.
(1) Liberalization of industrial policy that gives a greater role to the private sector,
(2) Liberalization of economic opening and foreign trade and capital inflows.
Some of the criticisms leveled against multinational corporations:
1. Colonialism: The MNC is considered a derivative of Western colonialism, although in a

more subtle way. Critics are arguing that the current and capital balances are both worsening,
far from improving the balance of payments, by multinationals.
2. Unparalleled Influence: The power, influence and reach of these multinational corporations
has allowed them to have a significant and highly influential influence on many governments
and the political dynamics of their countries. Multinational corporations are known to use
their influence to pressure governments to enforce national policies that will lead to the
ultimate goal, increasing competitiveness and ultimately yielding significant benefits.
3. Technical Fraud: technology transfer agreements do not always hold, and if they do, they
generally support and distort MNCs. Even if most people do not agree with a fully
transparent technology transfer, even if it does, the technology delivered to the state is
generally patented or outdated in nature, and therefore does little to host countries on a global
scale.
4. Little or no responsibility: The MNC is made up of international organizations that

function beyond the provincial governments with regard to decision-making powers and the
powers they hold over financial assets. This legitimate challenge has been around for over 30
years, but we can only see some progress in terms of accountability.
5. Violation of social and economic rights: The dominant and important position of
multinational enterprises in international forums enhances the capacity of the opposition.
Multinational corporations can easily promote or undermine economic and social rights,
which in turn can have a positive or negative impact on the international community,
depending on the local market of the economy.
Counterarguments:
In such an economic environment, multinational corporations pursuing global interests are

guided to invest in developing countries, and foreign direct investment by multinational
corporations brings many benefits to beneficiary countries. Economic growth and
employment Creation. Therefore, the role of multinational corporations in India and other
developing countries has been criticized for several reasons.
What is meant by ethical relativism? What are its implications? Why is it less
preferable to moral universalism in doing business across cultures?
Answer
Ethical relativism is a theory that claims that morality is relative to one's cultural norms. In
short, right or wrong behavior depends on the moral norms of the society in which it is
carried out. In societies that do the same thing, it can be morally correct, but in other societies
it can be morally wrong.
Ethical relativism implications:
Because of culture-based moral relativism, accepting these moral mistakes is dangerous

because it leads to indifference. We cannot judge and moral legitimacy "goes anything" if it
depends on a particular culture. Moral relativism leads to moral paralysis and indifference.
Why is it less preferable to moral universalism in doing business across cultures:
Logical diversity does not mean moral relativism, nor does it turn moral truth into falsehood;
that is, the existence of different cultures with different moral values does not prove that there
is no objective moral truth; in addition, relativism also implies The acceptability of obvious
moral errors. This is problematic for moral relativism. Moral relativism leads to moral
paralysis and indifference.

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Discuss the criticisms that have been leveled against MNCs in the past regarding their

activities in less-developed countries. What counterarguments are there to those

Some of the criticisms leveled against multinational corporations:

1. Colonialism: The MNC is considered a derivative of Western colonialism, although in a

4. Little or no responsibility: The MNC is made up of international organizations that

In such an economic environment, multinational corporations pursuing global interests are

Ethical relativism implications:

Because of culture-based moral relativism, accepting these moral mistakes is dangerous

Why is it less preferable to moral universalism in doing business across cultures:

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