58.
Too Powerful
For Being Just A Firm
Of the world’s 100 largest economic entities, 51 are multinational companies and 49 are nation states. Sales and net profit figures for some multinationals are higher than GNPs of developing countries, like for example the annual sales of Shell are roughly £68billion, which is two and half times the income of Nigeria’s 110 million people. In 1989, more than 18 per cent of all share trading was in the shares of the major multinationals.
In 1993 the combined assets of the top 300 MNCs would make up roughly a quarter of the worlds $20trillion productive assets and there was an accusation by Jack Behrman that several American companies could “buy out” some European countries. Coca-Cola advertisements are being shown 560 million times a day, everyday in 160 countries, while majority of world population does not know where Fiji is.
These facts and figures undoubtfully may lead to the conclusion that indeed the MNCs do possess distinctive economical superiority over some nation states, and therefore are too powerful for being just a firm with such cynical target as profit maximisation and not welfare of the citizens.
In 1993 the combined assets of the top 300 MNCs would make up roughly a quarter of the worlds $20trillion productive assets and there was an accusation by Jack Behrman that several American companies could “buy out” some European countries. Coca-Cola advertisements are being shown 560 million times a day, everyday in 160 countries, while majority of world population does not know where Fiji is.
These facts and figures undoubtfully may lead to the conclusion that indeed the MNCs do possess distinctive economical superiority over some nation states, and therefore are too powerful for being just a firm with such cynical target as profit maximisation and not welfare of the citizens.
Since MNCs dominate media production and distribution - just six corporations sell 80 percent of all the recorded music worldwide - they introduce ideas and images that some governments and religious groups fear may destabilize their societies.
Accelerated process of Globalisation is one of the main features of twentieth century world politics and is “one of the most dramatic developments of the period and has more than just economical and industrial significance”. Professor Sakamoto has identified the globalisation of capitalism as the “…key element in the changing world order”. Accordingly, the notion of the nation state becomes less vivid, while new actors, such as multinational companies are being spotted on the international stage. Multinationals(MNCs) by their virtue are direct creations of globalisation, however, the humanity is still in doubt whether the sudden “mushrooming” of these institutions bodes good for the new global order or whether they are going to turn into ‘mutant monsters’
causing major economic disasters. Bill Emott argued that Multinationals do not dominate the world market and ‘are not even global’, while others strongly feel that “multinationals are increasingly going global” and call them “powerful beasts”.
MNCs have emerged because of ‘structural’ and ‘inherent’ market imperfections, such as restrictions on imports, excise duties, subsidies, unstable exchange rates, distribution and marketing costs and have grown rapidly because of economies of scale and particularly due to their burst through national boundaries, customs and ideologies.
causing major economic disasters. Bill Emott argued that Multinationals do not dominate the world market and ‘are not even global’, while others strongly feel that “multinationals are increasingly going global” and call them “powerful beasts”.
MNCs have emerged because of ‘structural’ and ‘inherent’ market imperfections, such as restrictions on imports, excise duties, subsidies, unstable exchange rates, distribution and marketing costs and have grown rapidly because of economies of scale and particularly due to their burst through national boundaries, customs and ideologies.
“Human prosperity flourishes by natural gifts and not by gigantic industrial enterprises. The gigantic industrial enterprises are products of a godless civilization, and they cause the destruction of the noble aims of human life. The more we go on increasing such troublesome industries to squeeze out the vital energy of the human being, the more there will be unrest and dissatisfaction of the people in general, although a few only can live lavishly by exploitation. The natural gifts such as grains and vegetables, fruits, rivers, the hills of jewels and minerals, and the seas full of pearls are supplied by the order of the Supreme, and as He desires, material nature produces them in abundance or restricts them at times.”
-Srila Prabhupada (Srimad Bhagavatam 1.8.40)
The primary target of promotional policies of multinationals is to create one customer culture, so that people around the globe purchase identical basket of goods: “watch Hollywood films on Phillips television set, while smoking Marlboro and drinking Coke”. During the 1970s largest number out of 7000 MNCs was based in USA. By the early 1990s there were 35000 multinationals, however USA still maintained its leadership. These companies aim at promoting same goods around the globe in order to create one identical consumer culture, which is very much influenced by that of American.
Historically, public opposition to multinationals has arisen mainly from concerns about undue concentrations of power, and their implications for national sovereignty and cultures. In recent years, however, there has been a shift in emphasis away from these ‘state-centred’ concerns towards more ‘people-centred’ concerns, such as the environment and human rights.
Historically, public opposition to multinationals has arisen mainly from concerns about undue concentrations of power, and their implications for national sovereignty and cultures. In recent years, however, there has been a shift in emphasis away from these ‘state-centred’ concerns towards more ‘people-centred’ concerns, such as the environment and human rights.
“The dinosaur’s eloquent lesson is that if some bigness is good, an overabundance of bigness is not necessarily better.”
- Eric Johnston.
