Management and Business Essay Example | Topics and Well Written Essays - 1750 words

Management and Business - Essay Example So the hue and cry by environmentalists to create such regulations does not seem too environment-friendly, after all [Bhagwati (2004), p.137]. The infant food manufacturers, of these Nestle was specifically targeted by social organizations, contributed to the death of infants from less developed countries (LDCs). They sold their products to people incapable of using them properly. The charges were that many third world nations have contaminated water supply and parents dilute the formula to stretch the supply. The defence by nestle stated that it has never advertised to substitute breast feeding with bottle feeding and that It had actually promoted formula as supplement to aid nutrition. Since mothers in poor nations have deficiencies or their work schedule does not permit them timely feeding. However, despite strong protests against the infant formula controversy, these multinationals are still strongly holding their place in LDCs [Auscampus (2009)]. When government reprimands a fac tory, through its regulations, for dumping hazardous waste into river or destroying environment by its activities, the company can obey the government by cleaning up environment or upgrading its processes. Alternatively it may move over to some other country, the LDC, for its operation. The LDC requires revenue generated by the company but does not use any high tech environment protection rules [VEXEN Crabtree (2006), pars. 2-3]. Are multinationals getting more powerful than state governments The answer could be obtained by evaluating the financial strength and extent of employment generated by these. If the revenue of General Motors and Ford put together, it would supersede the GDP for all of sub-Saharan Africa. The car multinationals are directly providing employment to more than 20 million people and to a lot more in the associated industries. Today these are in position to decide the fate of government. The ownership and power is same with other industries also. Today two corporations control 80 percent of the coffee production of world; merely four corporations account for 87 percent of the world's tobacco industry, and two corporations--Boeing and Airbus have almost monopoly over civilian airplane production by having a share of 95 percent. The top 200 firms now control one fourth of the world's monetary activity. Among the top 100 of these, increase in total assets has been extraordinary. Their assets have gone up to USD 4.2 trillion in 1995 from USD 0.5 trillion i n1980. For example, the wealth of the food and retail multinational Wal-Mart, after buying Asda in Britain, has become more than 161 countries including Israel, Poland and Greece. General Motors is bigger than Denmark while Ford is bigger than South Africa [Morgan (2000), pars.3-5]. These multinationals are better organized than the states where they invest their money. It gives them power to negotiate and manipulate deals particularly in weak and developing nations [Kehl (2009), p.2]. The globalization is not only changing the powers of state, it is also changing the territories of the states. Ohmae [1993 as cited in Axtmann (1996), p.119-120] explained that global economy is