Larcade Arcana

Marine Transportation IV
 MODULE 2: THE DEVELOPMENT OF WORLD POLITICS

LESSON 2.3: LOCATING THE GLOBAL SOUTH

Activity.List the possible ills if a transnational or multinational corporation invests in

a poor country in the global south. If given the chance to be the president of a global
south country, would you advocate for foreign investment through transnational and
multinational corporations? Explain your answer. (20 points)

 Substantial ownership Rights

 Free Markets
 The Rule of Law
 States offer lucrative packages such as tax holidays for a more extended
period.
 Lax Environmental Policies
 Unfair Labor Practices

Local companies might be gravely affected by the presence of an MNC in the country
because they did t have the same access to the same level of economic scale as those
MNCs access. To this, the MNC might drive the local business to fail. The types of
machinery needed by the MNC might be too capitally intensive and expensive which
negatively affects the host country. This is one of the reasons why the developing
county or host country remains stagnant or is encountering difficulties in their
economic growth.   On the other side, the positive effect of MNC and transnational
corporations provided more job opportunities. This means the rate of unemployment
in a country is more likely to decrease and result in reducing poverty. This can be
risky since more job opportunities require more expenses transformation but with
enough focus on the goal of  MNC's will reach it.  MNCs carry a capital flow to a
developing country that can boost growth in the economy of host countries. The
investment made by MNCs generates foreign currencies for progressing countries and
produces more revenue. 

Give you an example and explain this further. Multinational Corporations have
proved to help developing host countries and their economies by providing more job
opportunities for the locals this is one of the good effects of having a multinational
corporation in a developing country such as San Miguel Corporation, BDO and
Accenture are the leading MNCs that helped in providing jobs for the Filipinos as
they are the most sought out companies when it comes to job opportunities.
Furthermore, MNC also receives benefits of economies scale when they expand their
plans to other countries. Economies of scale mean that the company becomes more
efficient the more that it grows with the benefits of the economies of scale the prices
of their products or services will cost less for the benefits of the costumers or the
locals who buy or uses their items. 
(https://news.abs-cbn.com/video/business/02/20/17/us-based-zendesk-eyes-
expanding-workforce-in-ph)
US-based Zendesk eyes expanding workforce in PH

Another multinational tech company raises stake in the Philippines. Zendesk plans to
expand its workforce in the country as it opens its Silicon Valley-inspired
headquarters in Manila. - Business Nightly, ANC, February 20, 2017

With this news I gathered, I can conclude that when it comes to developing countries
as hosts, there are more positive effects rather than negative ones. This is due to the
reason such as the Philippines would need a greater hand to help us pull up our
economy by providing jobs to our locals and by lowering the products' cost for the
local consumers to buy. The lower the price the greater the possibility that more
consumers will buy a certain product that is taxed by our government and the tax that
would be received helps our economy in its developments. Therefore multinational
Corporations are seen as a helpful tool in a progressing and growing country's
development as it pulls and aids our economy to reach a competitive stance and
position. If I were given a chance to be a "Global South President", I would advocate
for foreign investment in transnational and multinational corporations.