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Pendekanti Law College
Political Science III
2/5 LLB
Topic: Transnational
Political Parties
Faculty: A.Manikyamba
Assistant Professor
Political Parties
It is a group of human beings ably organized, with the objective of securing or
maintaining for its leaders the control of the government and with further
objective of giving to the members of the party through such control, ideal
and material benefits and advantages.
► A party/group formed on the basis of an ideology.
► Participate in elections to come into power
► Constitutionally eligible
► Promote national interest and welfare of nation
► Profess and share same political views
► Political Unit to control government
► Policy or principles to fulfill constitutional goals
Types of Political Parties
First method :
1. Conservative: Pol party that supports the established order and
refuses to support change.
2. Progressing: Pol party which advocates change and progress
Second method:
1. The right: The right champion the established capitalist order
2. The Left: The Left defend liberty and progress
3. The centre: Combine the characteristics of both left and right
Third method :
1. Radical : Are discontented with existing order but hope for
improvement in future
2. Liberal : Contended with present but hope for better future
3. Psychological : Discontented with existing stage of affairs and yet
are not hopeful of improvement
Transnational Political Parties:
It is one that spreads across different nations. it is established in
different countries and linked to influence the activities of other
nation and in particular cooperate with each other
► A political party which is spread across national
► Established in different countries
► Has significant influence over the activities of other
► Cooperative with each other
► Guided by the party of a country
● A transnational political party is a single political party with members or
representatives in more than one country.
● A well-known example is the Arab Baath Socialist Party, established as an Arab
nationalist and socialist party aspiring to pan-Arab political union.
● The party's central governing body, the National Command, included
representatives from its organisations in all the Arab countries where Baathists
had a significant presence.
● Each branch of the party, in turn, had a local governing body, the Regional
Command, and although practical power became centred in the Syrian and Iraqi
Regional Commands and the National Command of each faction assumed an
essentially symbolic role, the party split in 1966, with different factions taking
control in Syria and Iraq, each faction retained a pan-Arab structure.
● Another example of a transnational political party is Sinn Féin, which has 7
Members of Parliament in the United Kingdom Parliament, and 37 Teachtaí Dála in
the Irish Dáil Éireann. Sinn Féin also has 26 MLAs in the Northern Ireland
Assembly. Some transnational organisations also have a party-political dimension.
Illustration of Transnational Political parties in the World:
Up to 2006, there were eight main Euro-parties: the European People’s Party (EPP –
Christian democrats), the Party of European Socialists (PES), the European Liberal
Democrats (ELDR), the European Green Party, the European Democratic Party
(Liberal, Pro-federalist); the Party of the European Left (Communist, Post-communist,
Democratic Left); Europe for alliance of nations (Nationalist) and the European Free
Alliance (EFA – nationalists and ethno-regionalists).
They are composed of parties from each of the EU Member States, in some cases more
than one, as well as Member parties from a wider Pan-European base including
Bulgaria, Romania, Norway and Switzerland. More recently established are the
European Left Party (comprised of democratic left and communist parties) and the
Alliance for Europe of the Nations (comprising Euro-sceptic parties).
There have also been soundings on the far right (led by the Austrian Jörg Haider)
about creating a Euro-party. Although linked to the European Parliamentary Groups,
the Euro-parties are distinct entities that exist to fulfill a different type of role.
European Parliament and Council Regulation on the regulations governing political
parties at European level and the rules governing their funding.
Essential of Transnational Political Party
► Operations in many nation-states
► Multinational central bureau of organization
► Local party acts on central leadership
► Struggles to and fights for power in the state
► Tries to implement its ideology
Examples: Communist party of USSR helped China, East European Countries, Cuba
to form Communist form of Government.
India has based mixed form of economy
Ideologies of Transnational Political Parties
Idea and ideological form are the elements of political power. The Ideals of
political power hold a long way in determining the extent of popular
sympathy and support for it at home and abroad
It is based on economic, social and political system
► Socialism
► Communism
► Democracy
► Liberalism
► Nationalism
Different Systems of Ideology
► At present there are no pure transnational political parties
► Capitalist form can be seen as Liberalism and democracy
► There are no opposing systems together like Liberalism-totalitarianism
Or democracy-communism
► Ideology of Totalitarianism and liberalism
► Ideology of Democracy and Communism
Transnational Non-Official Organisations
► An organization is a group of people organized for a particular purpose or a
limited number of purposes
► An association formed for collective pursuit of some interest
► Membership of organization is voluntary
► Aim or objective is the soul of the organization.
► Church, trade union, trusts are the instances of Organisation
► It is not an essential organisation like State or society
► The membership of organisation is voluntary
Non-Official or Non-Governmental
Organization
Voluntary group of individuals or organizations, usually not affiliated with and government,
that is formed to provide services or to advocate a public policy.
Although some NGOs are for-profit corporations, the vast majority are nonprofit
organizations.
Some NGOs, particularly those based in authoritarian countries, may be created or controlled
by governments.
By most definitions, political parties and criminal or violent guerrilla organizations are not
considered NGOs.
The issues addressed by NGOs run the gamut of human concerns (e.g., human rights,
environmental protection, disaster relief, and development assistance), and the scope of their
activities may be local, national, or international.
Some NGOs fulfill quasi-governmental functions for ethnic groups that lack a state of their
own.
NGOs may be financed by private donations, international organizations, governments, or a
Transnational corporations are one of the most important subjects of
international economics. They are directly affecting new trends in
international business, global competitiveness on international markets as
well as economies of states, nations.
The global impact of transnational organizations received scholars focus on
the increasing power of multinational corporations that operated with limited
restraints across national boundaries.
“global civil society” in which such organizations, including NGOs like
Amnesty International, would play an analogous international role to
domestic civil groups that foster national democratic cultures.
U.N. business initiative “Global Contact,” strongly fostered by Kofi Annan, is a
voluntary initiative. Since its founding in 1919 under the League of Nations,
the supranational International Labor Organization has maintained a semi-
public character more analogous to the current World Trade Organization
than “Global Compact.” ILO members are required to submit all conventions
to the proper national authorities and report their response. In 1998, the ILO
acted on the increased impact of globalization on workers by adopting a
Declaration of Fundamental Rights and Principles at Work.
Churches, the religious organizations
Church is the religious organisation
Durkhiem states as a ‘ a unified system of beliefs and practices related to
sacred things that is to say things set apart and forbidden-beliefs and
practices which unite into one single moral
community called churches, all those who adhere to them’
Characteristics of Religion:
● It is group phenomenon
● It is concerned with the sacred and supernatural
● It involves a set of practices and rituals
● It is moral implications
● It is strictly a matter of emotions
Functions of Religion are:
► Sets moral standards for individual
► Source of Social welfare
► means of social control
► provides meaning and positive purpose in times of difficulties
► Universal Culture and practices
Ecclesiastical Organisations: Any number of persons, not less than 3, may
incorporate for the purpose of establishing any church organization for the purpose of
teaching and spreading their religious beliefs and principles.. In all religions there is an
organisation, which is meant to promote the continuity of religion.
It promotes religious knowledge and continuity.
The Church: The Church is a well established organisation, The Church has
broadly been designed as any stable, we;; established religious group. Types of
Churches:
Ecclesia Churches: Ecclesia is a form of religious organisation where political and
religious institutions are closely integrated. The concept of Ecclesia was modelled
on the medieval European Church. It is large religious organisation, conservativ and
allied with secular authority. It dominations society with political authority.
Denomination of Church: A Denomination of Church is formed in societies where
there is a separation of religion and state. It is fairly large, integrated and
centralized. It don’t have control over territory
Sects: Sects originate as a remonstration against the old established religions
Cult: It is a small, rare and formless religious organisation. It is formed around
ideology and thinking of a particular individual leader. It is temporary in nature.
Multinational Corporations(MNCs) Multinational corporations (MNC) are defined by the United Nations as
enterprises which own or control production or service facilities outside the country in which they are based.
They engage in many types of operations which have varying impacts and policy implications for the home and host
governments.
The legal existence of MNC is derived from the laws of the home government, but the firms are also restricted by the laws of
the nations in which they operate.
Multinational corporation (MNC), also called transnational corporation, any corporation that is
registered and operates in more than one country at a time. Generally the corporation has its
headquarters in one country and operates wholly or partially owned subsidiaries in other countries. Its
subsidiaries report to the corporation’s central headquarters.
In economic terms, a firm’s advantages in establishing a multinational corporation include both
vertical and horizontal economies of scale (i.e., reductions in cost that result from an expanded level of
output and a consolidation of management) and an increased market share. Although cultural barriers
can create unpredictable obstacles as companies establish offices and production plants around the
world, a firm’s technical expertise, experienced personnel, and proven strategies usually can be
transferred from country to country.
Multinational companies can make direct investments in foreign countries. Many are
based in developed nations. Advocates say they create high-paying jobs and
technologically advanced goods in countries that otherwise would not have access to
such opportunities or goods.
The history of the multinational company is linked with the history of colonialism.
Many of the first multinational companies were commissioned at the behest of
European monarchs to conduct international expeditions.
Some of the colonies not held by Spain or Portugal existed under the administration
of some of the world's earliest multinational companies. One of the first was The East
India Company, established in 1600. This British multinational enterprise took part in
international trade and exploration, and operated trading posts in India.(EX.The East
India Company)
However, critics of these enterprises believe multinational corporations exert undue
political influence over governments, exploit developing nations, and create job
losses in their own home countries.
Characteristics of a Multinational Corporation
Some of the characteristics common to various types of multinational corporations include:
● A worldwide business presence
● Typically, large and powerful organizations
● Business conducted in various languages
● A complicated business model and structure
● Direct investments in foreign countries
● Jobs created in foreign countries, potentially with higher wages than found locally
● Seeks improved efficiencies, lower production costs, larger market share
● Has substantial expenses associated with navigating rules and regulations of foreign
countries
● Pays taxes in countries in which it operates
● Reports financial information according to International Financial Reporting Standards
(IFRS)
● Sometimes accused of negative economic and/or environmental impacts in foreign markets
● Sometimes accused of negative economic impacts in home country due to outsourcing jobs
Types of Multinational Corporations
Multinational corporations can be viewed as four main organizational types.
1.A Decentralized Corporation
A decentralized corporation maintains a presence in its home country and has
autonomous offices and other facilities in locations around the world. This type of
multinational company has the capability to achieve more, faster because it's
decentralized. Each office manages the local business itself, making its own
decisions.
2.A Centralized Global Corporation
A centralized global corporation has a central headquarters in the home country.
Executive officers and management located there oversee the global offices and
operations as well as domestic operations. They, rather than managers at local
offices in foreign countries, make the key business decisions. The offices typically
must report to and obtain approval from headquarters personnel for major
activities.
3.An International Division Within a Corporation
An international division is that part of the multinational corporation that has been made
responsible for all international operations. This structure facilitates business decision-
making and general activities in local, foreign markets. However, operating independently
can pose problems when overall corporate consensus and action is required. Maintaining
and presenting the carefully nurtured, enterprise-wide brand image established by the
multinational may also be a challenge.
4.A Transnational Corporation
A transnational corporation involves a parent-subsidiary structure whereby the parent
company oversees the operations of subsidiaries in foreign countries as well as in the
home country. Subsidiaries can make use of the parent's assets, such as research and
development data. Subsidiaries may be different brands, as well. The parent usually
maintains a management role directing the operations of its subsidiaries, domestic and
foreign.
Advantages and Disadvantages of Multinational Corporations
International operations present a variety of advantages and disadvantages to
multinational companies, consumers, and a workforce.
Advantages
1. Developing an international presence can open up new markets and sales opportunities
unavailable or not feasible when operating just domestically. For example, a presence in a
foreign country such as India can allow a corporation to meet widespread Indian demand for
particular products without the transaction costs associated with long-distance shipping.
2. Corporations can establish operations in markets where their capital can be used most
efficiently and wages have less impact on the bottom line than they did in the home country.
3. By producing the same quality of goods at lower costs, multinational companies can reduce
prices and increase the purchasing power of consumers worldwide.
4. Multinational companies can also take advantage of lower tax rates available in countries
eager for their direct investments and the jobs that they'll create. Note, however, that the
European Union has a plan to implement a minimum tax of 15% on corporate profits, to
become effective in 2023.6
5. Other benefits include a direct financial investment in foreign countries and job growth in their local
economies.
Disadvantages
1. A trade-off of globalization—the price of lower prices—is that
domestic jobs move overseas. This can increase unemployment in
the home country and make it difficult for longtime employees in
outsourced industries to find new jobs.
2. Those opposed to multinational corporations point to the potential
they may have to develop a monopoly (for certain products). This
can drive up prices for consumers, stifle competition, and inhibit
innovation.
3. Multinational corporations are also said to have a detrimental effect
on the environment because their operations may encourage land
development and the depletion of local and natural resources.
4. Multinational companies may also cause the downfall of small, local
businesses. Activists have also claimed that multinational companies
breach ethical standards. They accuse them of evading laws to
advance their business agendas.
Organs of UNO
The United Nations (UN) has six main organs. Five of them — the General
Assembly, the Security Council, the Economic and Social Council, the
Trusteeship Council and the Secretariat — are based at UN Headquarters in
New York. The sixth, the International Court of Justice, is located at The
Hague in the Netherlands.
United Nations Headquarters in New York
The United Nations is neither a supra-State nor a government of
governments. It does not have an army and it imposes no taxes. It depends
on the political will of its Member States to have its decisions put into action
and relies on the contributions of its Members to carry out its activities.
The six organs of the United Nations are outlined in the sections below:
General Assembly The General Assembly is the main deliberative
organ of the United Nations. It is composed of representatives from all
Member States, each of which has one vote.
Security Council Under the Charter, the Security Council has primary
responsibility for the maintenance of international peace and security.
It has 15 Members, and each Member has one vote. Under the Charter,
all Member States are obligated to comply with Council decisions.
Economic and Social Council A founding UN Charter body established
in 1946, the Economic and Social Council (ECOSOC) is the place where
the world’s economic, social and environmental challenges are
discussed and debated, and policy recommendations issued.
Trusteeship Council The Trusteeship Council was
established to provide international supervision for 11
Trust Territories and to make sure that adequate steps
were taken to prepare the Territories for self-
government or independence.
International Court of Justice The International Court of
Justice is the principal judicial organ of the United
Nations. The Court is charged with settling legal
disputes between States and giving advisory opinions
to the United Nations and its specialized agencies.
Secretariat The UN Secretariat, consisting of staff
representing all nationalities working in duty stations
all over the world, carries out the day to day work of the
Organization. The Secretariat services the other
principal organs of the United Nations and administers
the programmes and policies established by them.
Transnational Organisations
1. UNESCO is the United Nations Educational, Scientific and Cultural Organization. It
contributes to peace and security by promoting international cooperation in education,
sciences, culture, communication and information. UNESCO promotes knowledge sharing
and the free flow of ideas to accelerate mutual understanding and a more perfect
knowledge of each other's lives. UNESCO's programmes contribute to the achievement of
the Sustainable Development Goals defined in the 2030 Agenda, adopted by the UN
General Assembly in 2015.
2. The Economic and Social Council is at the heart of the United Nations system to advance the three
dimensions of sustainable development – economic, social and environmental. It is the central
platform for fostering debate and innovative thinking, forging consensus on ways forward, and
coordinating efforts to achieve internationally agreed goals. It is also responsible for the follow-up to
major UN conferences and summits.The UN Charter established ECOSOC in 1945 as one of the six
main organs of the United Nations.
3. Universal Declaration of Human Rights The objective of UDHR is to endorse and protect
various rights of human beings. The UDHR with various provisions lists out the basic
postulates and principles of human rights in a most comprehensive manner. It deals not
only with civil and political rights, but also with social and economic rights.

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Transnational Political Parties and Non-Official Organizations

  • 1. Pendekanti Law College Political Science III 2/5 LLB Topic: Transnational Political Parties Faculty: A.Manikyamba Assistant Professor
  • 2. Political Parties It is a group of human beings ably organized, with the objective of securing or maintaining for its leaders the control of the government and with further objective of giving to the members of the party through such control, ideal and material benefits and advantages. ► A party/group formed on the basis of an ideology. ► Participate in elections to come into power ► Constitutionally eligible ► Promote national interest and welfare of nation ► Profess and share same political views ► Political Unit to control government ► Policy or principles to fulfill constitutional goals
  • 3. Types of Political Parties First method : 1. Conservative: Pol party that supports the established order and refuses to support change. 2. Progressing: Pol party which advocates change and progress Second method: 1. The right: The right champion the established capitalist order 2. The Left: The Left defend liberty and progress 3. The centre: Combine the characteristics of both left and right Third method : 1. Radical : Are discontented with existing order but hope for improvement in future 2. Liberal : Contended with present but hope for better future 3. Psychological : Discontented with existing stage of affairs and yet are not hopeful of improvement
  • 4. Transnational Political Parties: It is one that spreads across different nations. it is established in different countries and linked to influence the activities of other nation and in particular cooperate with each other ► A political party which is spread across national ► Established in different countries ► Has significant influence over the activities of other ► Cooperative with each other ► Guided by the party of a country
  • 5. ● A transnational political party is a single political party with members or representatives in more than one country. ● A well-known example is the Arab Baath Socialist Party, established as an Arab nationalist and socialist party aspiring to pan-Arab political union. ● The party's central governing body, the National Command, included representatives from its organisations in all the Arab countries where Baathists had a significant presence. ● Each branch of the party, in turn, had a local governing body, the Regional Command, and although practical power became centred in the Syrian and Iraqi Regional Commands and the National Command of each faction assumed an essentially symbolic role, the party split in 1966, with different factions taking control in Syria and Iraq, each faction retained a pan-Arab structure. ● Another example of a transnational political party is Sinn Féin, which has 7 Members of Parliament in the United Kingdom Parliament, and 37 Teachtaí Dála in the Irish Dáil Éireann. Sinn Féin also has 26 MLAs in the Northern Ireland Assembly. Some transnational organisations also have a party-political dimension.
  • 6. Illustration of Transnational Political parties in the World: Up to 2006, there were eight main Euro-parties: the European People’s Party (EPP – Christian democrats), the Party of European Socialists (PES), the European Liberal Democrats (ELDR), the European Green Party, the European Democratic Party (Liberal, Pro-federalist); the Party of the European Left (Communist, Post-communist, Democratic Left); Europe for alliance of nations (Nationalist) and the European Free Alliance (EFA – nationalists and ethno-regionalists). They are composed of parties from each of the EU Member States, in some cases more than one, as well as Member parties from a wider Pan-European base including Bulgaria, Romania, Norway and Switzerland. More recently established are the European Left Party (comprised of democratic left and communist parties) and the Alliance for Europe of the Nations (comprising Euro-sceptic parties). There have also been soundings on the far right (led by the Austrian Jörg Haider) about creating a Euro-party. Although linked to the European Parliamentary Groups, the Euro-parties are distinct entities that exist to fulfill a different type of role. European Parliament and Council Regulation on the regulations governing political parties at European level and the rules governing their funding.
  • 7. Essential of Transnational Political Party ► Operations in many nation-states ► Multinational central bureau of organization ► Local party acts on central leadership ► Struggles to and fights for power in the state ► Tries to implement its ideology Examples: Communist party of USSR helped China, East European Countries, Cuba to form Communist form of Government. India has based mixed form of economy
  • 8. Ideologies of Transnational Political Parties Idea and ideological form are the elements of political power. The Ideals of political power hold a long way in determining the extent of popular sympathy and support for it at home and abroad It is based on economic, social and political system ► Socialism ► Communism ► Democracy ► Liberalism ► Nationalism
  • 9. Different Systems of Ideology ► At present there are no pure transnational political parties ► Capitalist form can be seen as Liberalism and democracy ► There are no opposing systems together like Liberalism-totalitarianism Or democracy-communism
  • 10. ► Ideology of Totalitarianism and liberalism ► Ideology of Democracy and Communism
  • 11. Transnational Non-Official Organisations ► An organization is a group of people organized for a particular purpose or a limited number of purposes ► An association formed for collective pursuit of some interest ► Membership of organization is voluntary ► Aim or objective is the soul of the organization. ► Church, trade union, trusts are the instances of Organisation ► It is not an essential organisation like State or society ► The membership of organisation is voluntary
  • 12. Non-Official or Non-Governmental Organization Voluntary group of individuals or organizations, usually not affiliated with and government, that is formed to provide services or to advocate a public policy. Although some NGOs are for-profit corporations, the vast majority are nonprofit organizations. Some NGOs, particularly those based in authoritarian countries, may be created or controlled by governments. By most definitions, political parties and criminal or violent guerrilla organizations are not considered NGOs. The issues addressed by NGOs run the gamut of human concerns (e.g., human rights, environmental protection, disaster relief, and development assistance), and the scope of their activities may be local, national, or international. Some NGOs fulfill quasi-governmental functions for ethnic groups that lack a state of their own. NGOs may be financed by private donations, international organizations, governments, or a
  • 13. Transnational corporations are one of the most important subjects of international economics. They are directly affecting new trends in international business, global competitiveness on international markets as well as economies of states, nations. The global impact of transnational organizations received scholars focus on the increasing power of multinational corporations that operated with limited restraints across national boundaries. “global civil society” in which such organizations, including NGOs like Amnesty International, would play an analogous international role to domestic civil groups that foster national democratic cultures. U.N. business initiative “Global Contact,” strongly fostered by Kofi Annan, is a voluntary initiative. Since its founding in 1919 under the League of Nations, the supranational International Labor Organization has maintained a semi- public character more analogous to the current World Trade Organization than “Global Compact.” ILO members are required to submit all conventions to the proper national authorities and report their response. In 1998, the ILO acted on the increased impact of globalization on workers by adopting a Declaration of Fundamental Rights and Principles at Work.
  • 14. Churches, the religious organizations Church is the religious organisation Durkhiem states as a ‘ a unified system of beliefs and practices related to sacred things that is to say things set apart and forbidden-beliefs and practices which unite into one single moral community called churches, all those who adhere to them’ Characteristics of Religion: ● It is group phenomenon ● It is concerned with the sacred and supernatural ● It involves a set of practices and rituals ● It is moral implications ● It is strictly a matter of emotions Functions of Religion are: ► Sets moral standards for individual ► Source of Social welfare ► means of social control ► provides meaning and positive purpose in times of difficulties ► Universal Culture and practices
  • 15. Ecclesiastical Organisations: Any number of persons, not less than 3, may incorporate for the purpose of establishing any church organization for the purpose of teaching and spreading their religious beliefs and principles.. In all religions there is an organisation, which is meant to promote the continuity of religion. It promotes religious knowledge and continuity. The Church: The Church is a well established organisation, The Church has broadly been designed as any stable, we;; established religious group. Types of Churches: Ecclesia Churches: Ecclesia is a form of religious organisation where political and religious institutions are closely integrated. The concept of Ecclesia was modelled on the medieval European Church. It is large religious organisation, conservativ and allied with secular authority. It dominations society with political authority. Denomination of Church: A Denomination of Church is formed in societies where there is a separation of religion and state. It is fairly large, integrated and centralized. It don’t have control over territory Sects: Sects originate as a remonstration against the old established religions Cult: It is a small, rare and formless religious organisation. It is formed around ideology and thinking of a particular individual leader. It is temporary in nature.
  • 16. Multinational Corporations(MNCs) Multinational corporations (MNC) are defined by the United Nations as enterprises which own or control production or service facilities outside the country in which they are based. They engage in many types of operations which have varying impacts and policy implications for the home and host governments. The legal existence of MNC is derived from the laws of the home government, but the firms are also restricted by the laws of the nations in which they operate. Multinational corporation (MNC), also called transnational corporation, any corporation that is registered and operates in more than one country at a time. Generally the corporation has its headquarters in one country and operates wholly or partially owned subsidiaries in other countries. Its subsidiaries report to the corporation’s central headquarters. In economic terms, a firm’s advantages in establishing a multinational corporation include both vertical and horizontal economies of scale (i.e., reductions in cost that result from an expanded level of output and a consolidation of management) and an increased market share. Although cultural barriers can create unpredictable obstacles as companies establish offices and production plants around the world, a firm’s technical expertise, experienced personnel, and proven strategies usually can be transferred from country to country.
  • 17. Multinational companies can make direct investments in foreign countries. Many are based in developed nations. Advocates say they create high-paying jobs and technologically advanced goods in countries that otherwise would not have access to such opportunities or goods. The history of the multinational company is linked with the history of colonialism. Many of the first multinational companies were commissioned at the behest of European monarchs to conduct international expeditions. Some of the colonies not held by Spain or Portugal existed under the administration of some of the world's earliest multinational companies. One of the first was The East India Company, established in 1600. This British multinational enterprise took part in international trade and exploration, and operated trading posts in India.(EX.The East India Company) However, critics of these enterprises believe multinational corporations exert undue political influence over governments, exploit developing nations, and create job losses in their own home countries.
  • 18. Characteristics of a Multinational Corporation Some of the characteristics common to various types of multinational corporations include: ● A worldwide business presence ● Typically, large and powerful organizations ● Business conducted in various languages ● A complicated business model and structure ● Direct investments in foreign countries ● Jobs created in foreign countries, potentially with higher wages than found locally ● Seeks improved efficiencies, lower production costs, larger market share ● Has substantial expenses associated with navigating rules and regulations of foreign countries ● Pays taxes in countries in which it operates ● Reports financial information according to International Financial Reporting Standards (IFRS) ● Sometimes accused of negative economic and/or environmental impacts in foreign markets ● Sometimes accused of negative economic impacts in home country due to outsourcing jobs
  • 19. Types of Multinational Corporations Multinational corporations can be viewed as four main organizational types. 1.A Decentralized Corporation A decentralized corporation maintains a presence in its home country and has autonomous offices and other facilities in locations around the world. This type of multinational company has the capability to achieve more, faster because it's decentralized. Each office manages the local business itself, making its own decisions. 2.A Centralized Global Corporation A centralized global corporation has a central headquarters in the home country. Executive officers and management located there oversee the global offices and operations as well as domestic operations. They, rather than managers at local offices in foreign countries, make the key business decisions. The offices typically must report to and obtain approval from headquarters personnel for major activities.
  • 20. 3.An International Division Within a Corporation An international division is that part of the multinational corporation that has been made responsible for all international operations. This structure facilitates business decision- making and general activities in local, foreign markets. However, operating independently can pose problems when overall corporate consensus and action is required. Maintaining and presenting the carefully nurtured, enterprise-wide brand image established by the multinational may also be a challenge. 4.A Transnational Corporation A transnational corporation involves a parent-subsidiary structure whereby the parent company oversees the operations of subsidiaries in foreign countries as well as in the home country. Subsidiaries can make use of the parent's assets, such as research and development data. Subsidiaries may be different brands, as well. The parent usually maintains a management role directing the operations of its subsidiaries, domestic and foreign.
  • 21. Advantages and Disadvantages of Multinational Corporations International operations present a variety of advantages and disadvantages to multinational companies, consumers, and a workforce. Advantages 1. Developing an international presence can open up new markets and sales opportunities unavailable or not feasible when operating just domestically. For example, a presence in a foreign country such as India can allow a corporation to meet widespread Indian demand for particular products without the transaction costs associated with long-distance shipping. 2. Corporations can establish operations in markets where their capital can be used most efficiently and wages have less impact on the bottom line than they did in the home country. 3. By producing the same quality of goods at lower costs, multinational companies can reduce prices and increase the purchasing power of consumers worldwide. 4. Multinational companies can also take advantage of lower tax rates available in countries eager for their direct investments and the jobs that they'll create. Note, however, that the European Union has a plan to implement a minimum tax of 15% on corporate profits, to become effective in 2023.6 5. Other benefits include a direct financial investment in foreign countries and job growth in their local economies.
  • 22. Disadvantages 1. A trade-off of globalization—the price of lower prices—is that domestic jobs move overseas. This can increase unemployment in the home country and make it difficult for longtime employees in outsourced industries to find new jobs. 2. Those opposed to multinational corporations point to the potential they may have to develop a monopoly (for certain products). This can drive up prices for consumers, stifle competition, and inhibit innovation. 3. Multinational corporations are also said to have a detrimental effect on the environment because their operations may encourage land development and the depletion of local and natural resources. 4. Multinational companies may also cause the downfall of small, local businesses. Activists have also claimed that multinational companies breach ethical standards. They accuse them of evading laws to advance their business agendas.
  • 23. Organs of UNO The United Nations (UN) has six main organs. Five of them — the General Assembly, the Security Council, the Economic and Social Council, the Trusteeship Council and the Secretariat — are based at UN Headquarters in New York. The sixth, the International Court of Justice, is located at The Hague in the Netherlands. United Nations Headquarters in New York The United Nations is neither a supra-State nor a government of governments. It does not have an army and it imposes no taxes. It depends on the political will of its Member States to have its decisions put into action and relies on the contributions of its Members to carry out its activities.
  • 24. The six organs of the United Nations are outlined in the sections below: General Assembly The General Assembly is the main deliberative organ of the United Nations. It is composed of representatives from all Member States, each of which has one vote. Security Council Under the Charter, the Security Council has primary responsibility for the maintenance of international peace and security. It has 15 Members, and each Member has one vote. Under the Charter, all Member States are obligated to comply with Council decisions. Economic and Social Council A founding UN Charter body established in 1946, the Economic and Social Council (ECOSOC) is the place where the world’s economic, social and environmental challenges are discussed and debated, and policy recommendations issued.
  • 25. Trusteeship Council The Trusteeship Council was established to provide international supervision for 11 Trust Territories and to make sure that adequate steps were taken to prepare the Territories for self- government or independence. International Court of Justice The International Court of Justice is the principal judicial organ of the United Nations. The Court is charged with settling legal disputes between States and giving advisory opinions to the United Nations and its specialized agencies. Secretariat The UN Secretariat, consisting of staff representing all nationalities working in duty stations all over the world, carries out the day to day work of the Organization. The Secretariat services the other principal organs of the United Nations and administers the programmes and policies established by them.
  • 26. Transnational Organisations 1. UNESCO is the United Nations Educational, Scientific and Cultural Organization. It contributes to peace and security by promoting international cooperation in education, sciences, culture, communication and information. UNESCO promotes knowledge sharing and the free flow of ideas to accelerate mutual understanding and a more perfect knowledge of each other's lives. UNESCO's programmes contribute to the achievement of the Sustainable Development Goals defined in the 2030 Agenda, adopted by the UN General Assembly in 2015. 2. The Economic and Social Council is at the heart of the United Nations system to advance the three dimensions of sustainable development – economic, social and environmental. It is the central platform for fostering debate and innovative thinking, forging consensus on ways forward, and coordinating efforts to achieve internationally agreed goals. It is also responsible for the follow-up to major UN conferences and summits.The UN Charter established ECOSOC in 1945 as one of the six main organs of the United Nations. 3. Universal Declaration of Human Rights The objective of UDHR is to endorse and protect various rights of human beings. The UDHR with various provisions lists out the basic postulates and principles of human rights in a most comprehensive manner. It deals not only with civil and political rights, but also with social and economic rights.