Paper 1 - 4th October 2024 Flashcards
Multinational Cooperations
What are NGO’s?
A huge variety of organisations that aim to help people but always remain independent from any kind of government influence and usually non-profit.
What are Political leaders?
Leaders are individuals who are in charge of a group of people. A political leader is in charge of some form of government, whether that be the state, sub-national or local governments.
Types of Political Leaders (3)
- Top leaders- highly visible leaders of national significance in field of military, politics or religion.
- Middle leaders- leaders respected in specific sectors for their work as academics, or on humanitarian issues or representatives of ethnic groups.
- Grassroot leaders- Local leaders directly involved with the community in areas such as local politics, health or community building.
What are social movements (and example)?
1) Social movements are groups who share an opinion about a political issue.
2) These movements attempt to change attitude and behaviour among the social community.
3) These can begin spontaneously without a formal structure, but they share a common outlook and a desire for change.
What are resistance movements (and example)? (3)
1) A resistance movement directly seeks to resist and prevent a political policy.
2) The movement may be violent or non-violent.
3) They may be legal or illegal depending on the law of the state.
What are Interest Groups (and example)? (3)
1) A formally organised group of people that aims to influence public policy in area in which they have a particular interest.
2) They seek to influence public policy through lobbying and advocacy.
3) Interest groups are often formed around a specific issue, such as healthcare, education, or the environment.
What are Pressure Groups (and example)?
Pressure groups are similar to both interest groups and social movements. They are usually located within broader interest groups and have the aim of working openly and directly towards influencing those in power.
Difference between interest and pressure group
Define private actors
Private actors are those who are not directly involved with the government but who have the ability to make change and influence people.
What is a Multinational Corporation (MNC)?
1) A company that operates in multiple countries but is typically based in one home country .
2) MNCs have facilities, production sites, or branches in different countries, and they often manage and coordinate their global operations from their headquarters.
3) MNCs seek to maximize profits(main motive) by leveraging differences in national markets, labor costs, and regulatory environments.
Why are Multi-National corporations beneficial to a country? (Use economics and large firms) (6)
- Job creation - Brings substantial capital investment and resources into a country, leading to the establishment of new businesses or the expansion of existing ones. This investment generates job opportunities for local workers, ranging from skilled positions in management and technical fields to unskilled labor.
- Infrastructure investment - When MNCs set up operations in a country, they often invest in local infrastructure, including transportation networks, utilities, and communication systems. Not only facilitate the company’s operations but also benefit the local population and other businesses.
- Improved quality of goods - They Introduce advanced technologies and innovative processes that can enhance production quality. Local companies can learn from these practices, ultimately improving the overall quality of goods in the market. The presence of MNCs increases competition in the market, providing consumers with a wider array of quality products at competitive prices.
- Technology Transfer: They bring advanced technologies and innovations to host countries (e.g., Pfizer in healthcare).
- Global Trade Integration: MNCs help integrate local economies into global markets (e.g., Nestlé sourcing from local farmers).
- Skill and Knowledge Transfer: MNCs often provide training for their workforce, which helps in skill development. Additionally, they bring technical expertise and managerial knowledge, which can benefit the local workforce and industries.
- Improvement in Infrastructure: To facilitate their operations, MNCs may invest in improving infrastructure such as transportation, communication, and power supply, which also benefits the broader economy.
What are the negative impacts of multinational companies? + examples (4)
- Exploitation of the local workforce - Takes advantage of local labor markets, especially in developing countries. Offering low wages and poor working conditions. Workers may face unsafe or unhealthy work environments without proper protections or benefits. They prioritize low wage to increase profiut
Example - Nike - Nike has faced significant criticism for its labor practices in factories in developing countries. Poor working conditions and low wages lead to worker exploitation, affecting employees’ health and livelihoods while fostering social inequality.
- Higher pollution and environmental damage - MNC operations can lead to significant environmental degradation. They overlook negetive externalities for profit. MNCs may prioritize profit over environmental protection, resulting in increased air, water, and soil pollution from their industrial processes.
Example - BP (British Petroleum) - The Deepwater Horizon oil spill in 2010 resulted in significant oil pollution in the Gulf of Mexico, leading to devastating impacts on marine life and local economies.
- Returning profits to their home countries - MNCs often return a significant portion of their profits back to their home countries, causing eocnomic drain. This outflow of capital can limit the economic benefits that local economies derive from having MNCs operate within their borders. Instead of reinvesting in local communities, and infrastructure, the profits are transferred away, which can hinder local development. Limited Local development.
Example - Coca Cola - Known for sending significant amounts back to the USA.
- Less sense of Corporate Social Responsibility (CSR) and negative social impact - They lack social welfare, leading to negative externalities. MNCs may focus on profit maximization and overlook their social responsibilities, failing to invest in local community development or address social issues.
Example - Nestlé - Nestle has faced backlash over its marketing of infant formula in developing countries, which some argue undermines breastfeeding practices and poses health risks.
Why are MNC’s and TNC’s considered private actors? (5)
1) Independence from Government: Private actors operate independently of government control and are primarily driven by profit motives. While they may interact with governments and be influenced by regulations, they are not directly part of the governmental structure.
2) Ownership Structure: MNCs and TNCs are typically owned by private individuals or shareholders, rather than being publicly owned entities (like state-owned enterprises). Their decisions and operations are guided by their owners’ interests.
3) Decision-Making Power: These corporations have significant decision-making power over their operations, strategies, and practices, which allows them to influence economic conditions, labor practices, and environmental policies in the countries where they operate.
4) Global Reach: As private entities that operate across borders, MNCs and TNCs can exert influence on a global scale, impacting economies, cultures, and societies without being directly accountable to any one government.
5) Influence on Policy: MNCs and TNCs can shape public policy and social issues through lobbying, corporate social responsibility initiatives, and partnerships with non-governmental organizations, further solidifying their role as influential private actors in global politics.
Who are private actors? (4)
- A private actor could be a donor to political parties, or they could be a company that donates to a political lobby group.
- Private actors may influence politics in legal ways and/ or illegal ways.
- Private actors might work independently or with others, sometimes they are networked together as a group of powerful individuals/ companies.
- Private actors may be public in their political affiliations and opinions, or they could prioritize secrecy. (This is also why it can be difficult to distinguish conspiracy theories from facts).
Examples of MNC’s being significant (2)
- Apple Inc.
- Significance:
- Market Influence: Apple is a leader in consumer electronics, consistently innovating with products like the iPhone, iPad, and Mac. Its influence shapes industry standards and trends in technology and design.
- Economic Impact: As one of the largest companies in the world by market capitalization, Apple contributes significantly to global economies, job creation, and technology development, having a ripple effect across various sectors, including software, telecommunications, and retail.
- Significance:
- Coca-Cola
- Significance:
- Global Brand Recognition: Coca-Cola is one of the most recognized brands worldwide, with its products available in virtually every country. This level of recognition and consumer loyalty contributes to its strong market position.
- Cultural Influence: The company plays a significant role in global culture and marketing practices, often associated with lifestyle and social events, influencing consumer habits and marketing strategies globally.
- Significance:
