C.8 The Future of the Transnational Firm

Question 1

What are the four types of MNEs

Answer 1

1. Exploitive
2. Transactional
3. Responsive
4. Transformative

Question 2

Exploitive MNE

Answer 2

Views differences in wages, working conditions, and living standards and exploitable opportunities

Question 3

Transactional MNE

Answer 3

Engages in law-abiding, non-exploitive, commercial interactions

Question 4

Responsive MNE

Answer 4

Acts in a way that is sensitive and responsive to the needs of all its immediate stakeholders

Question 5

Transformative MNE

Answer 5

Commits to leading initiatives to bring life-enhancing changes to the broader society

Question 6

Drivers of current MNE trends

Answer 6

• NGOs as “watchdogs” of MNEs
• Supranational agencies, eg UN, serve as dialogue mediators and voluntary cross-sector initiatives
• Corps are adopting a broader, long-term perspective to social issues to ensure sustainable income and maintain existence