4.4.3. Controllng MNCs

Question 1

Factors to consider

Answer 1

1. Political influence
2. Legal control
3. Pressure groups
4. Social media

Question 2

Political influence

Answer 2

-Political institutions can enforce laws and regulations businesses must adhere to.
-MNCs in developed countries can exert pressure on national al governments via lobbying or bribing.

Question 3

Legal control

Answer 3

-Governments can enforce legislations snd regulations to control operation of MMCs.
-Governments want to attract MNCs to help boosts economy by creating legal control in areas relating to taxes and employments.

Question 4

Pressure groups

Answer 4

• Organisations that operate to influence company and public policy in interest of particular cause.
  -Can operate on national or international scale.
  -Can take action by: naming and shaming, direct action, lobbying by taking issues directly to government.

Question 5

Social media

Answer 5

-MNCs can use social media to spread awareness and promote businesses on global scale.
-But also enable stakeholders to freely share info about unethical behaviour of MNCs.
-Forces MNCs to address issues raised in social media due to high level of public exposure and info can easily be misled.

• when assessing best way to control MNCs must consider +ves and -ves of each methods and consider most effective method in context to extract: how large it is, how established it is, its reputation etc.