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MNC and Islam

MNC and Islam

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Published by asepsetia
Role of Islam for MNC Business
Role of Islam for MNC Business

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Published by: asepsetia on Oct 25, 2007
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07/15/2011

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Islam and MNCByAsep SetiawanThis essay assesses whether Islamic fundamentalism is a threat to multinationalbusiness. Two variables are applied for the assessment : the Islamic way of thinking and the impact of the manifestation Islamic system on internationalbusiness particularly banking dan finance sectors. It seems those fields are moreaffected than, for instance, in extracting or manufacturing sectors. Based on thosevariables this essay will analyse whether Islamic militant is a hazard totransnational business. In this paper Islamic fundamentalism refers to a searchfor fundamentals of faith, the foundations of Islamic polity and the bases of legitimate authority.
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While multinational business is defined as a group of corporation that is operating in different countries but is controlled by itsheadquarters in a given country.
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In this essay, the first section deal with Islamicworld-view and then, the second part, to assess the Islamic fundamentalism'simpact to multinational business.IITo begin with, it is useful to consider the origins of the fundamentalism.Islamic fundamentalism as the movement back to the basic value is not a new
 
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phenomenon throughout the Islamic history. Generally speaking the emergenceof fundamentalism has been closely associated to the spiritual, social andpolitical crises. In other words, when the existence of the Islamic polity and moralintegrity were under threat the forms of a fundamentalism could be appeared.
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Amajor crises in Islamic history and in muslim identity was precipitated by theadvent of the combining the Western colonialism and the Christian missionaries.The Arab-Israel conflict also generates radicalism. Other factors that contribute tothe emergence militants are a class conflict, modernization, an corrupt pro-Western regime, communism and the military impotence particularly when theArab countries were defeated by Israel. To some extent, the presence of Westernfirms from the point of view of some fundamentalist is perceived as a toolAmerican-European power to maintain colonialism in the new forms. Gilpin notesthat the dominating presence of foreign corporations in the host country ischaracterized as constituting for of cultural imperialism.
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 Since fundamentalism is the effort to establish Islamic system in a society,it is important to explore briefly what Islam is. The name "Islam" is the key tounderstanding the nature of the religion. Islam means "to submit". Therefore, amuslim is one who accepts and submits to the will of Allah. According to Sardar,"Islam is perceived not as a religion with set of rituals nor as body of law withcatalogue of dos and don'ts, but as a total, systemic holistic world-view."
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Because Islam is the detailed way of live, it brings about the implications tovarious activities such as economics and politics even international relations.
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Thus, it seems that all muslims activities can not be separated from the religion.The shari'a which contains Qur'an and Sunnah is the foundation of an Islamicsociety.As mentioned above, Islam covered all muslims activities including theeconomics matters. Khan argues that the basic economics concept in Islam isthat the ownership of everything belong to God alone. Man is God's vicegerent onearth. God has subjected to man's service.
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Legal ownership of the individual,that is to say, the right of possession, enjoyment and transfer of property, isrecognized and safeguard in Islam. But all ownership, as Khan explains, subjectto the moral obligation that in all wealth all sections of society have right toshare.
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As a consequence, the Islamic economic should be based on shari'a andmerely to implement Allah's will.Moreover Islam constitutes the special framework in the finance andbanking issues. Above of all Qur'an ordains the prohibition of interest (
riba
) bywhich is meant the receipt and payment of interest.
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This can be considered thatan Islamic business cannot deal in any negotiable instrument that would entail thereceipt or payment of interest. It is because of the Muslim's believe that aninterest is prohibited for all purposes and in all its form. From the Islamic viewpoint of view,
riba
is prohibited because it tends to draw wealth into the hands of small circle. In the case of loans which bear interest, the lender in effect takesadvantages of and makes a profit from the need or distress another.
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However,

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