Sample Economics Essay On multinational corporations

Homework Question on MNCs, international lenders and developing countries

What specific ways do Multinational corporations and international lenders respectively create significant difficulties for developing countries? What are the 3-4 main approaches Stiglitz would advise to rectify this situation? Do you agree or not and why?

Homework Answer on MNCs, international lenders and developing countries

            The world, as it continues to globalize, is usually accompanies by various forms of interactive relationships that mainly prevail between developed and developing nations. These relationships are usually corporate-led, and hence, they perpetuate significant influences that developed nations have on people around the world. As explained by Elizabeth(129), corporations, as they grow bigger and become multinational, make intense choices intended to increase profits.

On the other hand, international lenders seek available opportunities to maximize interests attached to essential resources that they dispatch to borrowers. This in return intensifies the impact that growing inequalities between nations have in that developing nations end up experiencing varying difficulties perpetuated by these relationships. This paper looks into various ways in which multinational corporations as well as the international lenders pose difficulties on developing nations.

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How multinational corporations and international lenders pose difficulties on developing nations

            Multinational corporations usually undertake important and morally justifiable activities in developing nations. This is because MNCs create an opportunity for developing nations to generate higher income as well as consume high quality goods.