controlling mncs 2

Question 1

what are the 4 factors to consider when controlling mncs?

Answer 1

1. political influence
2. legal control
3. pressure groups
4. social media

Question 2

social media

Answer 2

• MNCs advantage to spread awareness and promote their business on a global scale
• However social media also enables stakeholders to freely share information about the unethical behaviour of MNCs
• MNCs are forced to address the issues raised on social media as there is a high level of public exposure and information can spread rapidly
• MNC influence on social media may be limited in some countries as they have regulations in place to manage social media power

Question 3

pressure groups

Answer 3

• Pressure groups are organisations that operate to influence company and public policy in the interest of a particular cause
• Pressure groups can operate on a national or international scale
• ressure groups can take action in different forms such as:
  Naming and shaming
  Direct action
  E.g. Protests, strikes and boycotting products
  Lobbying by taking issues directly to the government

Question 4

legal control

Answer 4

• Governments can enforce legislation and regulation to control the operations of MNCs
• ## Governments want to attract MNCs to help boost their economy, so creating legal control in areas relating to taxes and employment ensures stability for the MNC

Question 5

political influences

Answer 5

• MNCs in developed countries are often able to exert pressure on national governments through lobbying to create favourable conditions for their business
• MNCs in developing countries can influence governments as they may establish deals which are beneficial to politicians