Political effects of multinational corporations.

The rise of the multinational corporation is dramatic. In the last 50 years, the number of multinational corporations has gone up by over 100. Multinational corporations have also increased rapidly in political prominence. In the past two years the role of these spreading enterprises has been debated in internationally in the European Community, the U.S. Senate and the U.N. General Assembly. The general connotations of Multinational Corporations is that they are a threat, however, multinational corporations can have a positive impact on developing countries, and the world.

"Even setting aside past legacies of sinister corporate conduct, most students of politics agree that Multi-national Corporations are potentially important actors—for better or for worse—in a country's political development because they can influence the rate, direction, and beneficiaries of change. Most case studies begin with the assumption that the political impact resulting from the presence of Multinational Corporations in developing countries is primarily a function of the international economic system."- H. Jeffery Lennard (Cambridge)

Multinational corporations can certainly influence political development in countries. They can positively affect it through things such as; providing employment, providing inward investment to that particular company (Which serves as a direct flow of capital into the country), and can also provide opportunities for the economy of the country.

However, they can also cause negative effects in the political status of countries. The most prominent, and the most obvious, is the environmental impact. Many politicians are concerned about the role that MNCs play in environmental decline in certain geographical areas/nations. They also have an impact on the culture of the company, and can change it in negative ways (See blog post on Mc Donalds). Another huge issue is that multinational companies distribute their profits to their home company, and so the host company does not benefit.

Overall, Multinational Corporations have a very interesting political influence on the world and developing countries, and can both negatively and positively impact the political status of nations.