Challenges of Global Governance Multinational Corporations - 550 Words

Evaluate the Relevance of Multinational Corporations According to Kern & Mingst and Mike Collins (Essay Sample) Content: MULTINATIONAL CORPORATIONS Challenges of global governance: Multinational CorporationsTwo decades ago, globalization was heralded as the harbinger for positive economic, political and social reform. However, as Collins (2015) points out the golden age of open borders is full of hurdles and obstacles and the costs seem to outweigh the benefits. He concedes that MNCs, the engines that have fuelled the new global order have facilitated economic growth and boosted information, technology and cultural transfer to some extent. Cross boarder capital flows have led to the creation of jobs and deflated consumer prices as companies become more competitive and labor, cheaper. Information and technology flows, on the other hand have boosted acculturation and stimulated the adoption of principles like democracy, equality, and human rights all over the globe.However, despite these positive outcomes, Collins contends that globalization has had far-reaching negative outcomes and i s particularly unfavorable for the working class in America. Protectionist attitudes impede free trade as nations enforce restrictive import and export measures. The working class in developed nations faces the continual threat of job loss and pay cuts due to the cheap labor provided in other countries whereas workers in developing nations slave in poor working conditions with subpar wages. Furthermore, there is an increase in counterfeit product as technology gets copied, an increase in digital heists, ecological damage and invasion of communicable diseases.Collins argument seems strongly inclined towards the unfavorable outcomes of globalization for developed nations especially the working class. Kern, Mingst and Stiles however, contend that globalization has more adverse effects on developing nations as MNCs pose a threat to national sovereignty and culture, exploit labor, deplete natural resources, downgrade environments and carry out social injustices. These two points of vie w perfectly capture the tug of war and differing points of view present in the global market with emerging nations skeptical of the motives and influence of MNCs and MNCs decrying the unfavorable conditions, levies and treatment, duplication of content and unfair competition in host nations. Both Kern (2015) and Collins (2015) recognize the need for practical rules and guidelines to safeguard both the interest of MNCs and host nations. Collins suggests that sound leadership, balanced and fair trade agreements and a strict enforcement of rules are requisite for a unified and cooperative global system. Kern and Stiles on the other hand proposes more diplomatic measures. They aggrandize the UN global compact principles which call on MNCs to espouse a culture of integrity by meeting fundamental responsibilities to people and planet as a launch pad to cross boarder ethics and understanding. They also point out that multi-lateral diplomacy which advocates for a balance in exchanges, pow er and charm and promotes diffuse reciprocity can be highly effective in quelling political and economic tensions between guest and host. However, though good on paper, the overload of countries and organizations with varying interesting and opinions coupled with the absence of a supranational organization to provide central direction serve to undermine the authority, effectiveness and impact of multilateral diplomacy. Globalization is a double edged sword with profound benefits and equally profound pitfalls. The complex, dynamic, highly competitive and extre...