Multinational corporation and welfare state

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Multinational Corporation is a term coined from British East Indian Company during the year 1600. The idea behind multinational is having a company in more than one country. Multinational Corporation is a large business company operating in several countries with production and distribution. The company has their biases in their place of origin and has 25% out in other countries. Other terms that are synonymous to multinational corporations are international companies and transnational corporation. There are many conflicts surrounded by this term because there is confusion whether they solve problems or they create dependency that can harm these countries.

Multinational Corporations have contributed positively to the global markets because they provide investment to other countries globally. They also have assisted in creating jobs in other countries as well as develop infrastructure and improve technology (Lazarus, 2001). In addition, they have created access to global market for companies in other countries. There are negative influences of multination corporation companies. This is because the companies will finally bring profits to their home country. They have created inequality since some companies will pay their workers well and exploit other workers. It is unfair since some of these companies use poor workers and poor communities to make profits

Welfare is a term referring to any form of help from the government to citizens who have low income t meet their basic needs. Welfare state can cause underemployment since some people take advantage of this program to get money without working (Riphahn, 1999). It is a good thing as it puts the needs of the children first by finding a shelter for them. The program is not enough to provide the necessities since it only provide shelter and food but does not provide other stuff. It might give a feeling of taking care of other individuals but it creates more harm than good.

The principle of welfare state to provide more help makes people more dependable. In the long last the system will collapse because people do not get good education, they do not work and they are very dependable to welfare state.

The system is advantageous since it provides health care, social services and free education. The systems also take care of old people who cannot take of themselves. Welfare services are a property for citizens and it should be available to everyone (Thane, 2008). Everyone pay taxes and it is their rights to receive these services. Conversely, not all people should receive these free services especially those who can afford the services. These services should only be provided to people who truly need them. It is very difficult when cost of welfare state is rising more than the economic growth of a country (Winston, 1999).

Conclusion

Multinational companies and welfare state are connected in a way since they both want to improve the living standard of their citizens. Multinational companies try to bring resources and profits to their home country while welfare state gives free services to those who cannot afford the basic services. Both multinational companies and welfare state cause dependency of citizens and this has negative impact to the economy. The two systems are exploitive to some people. For instance, multinational companies exploit workers from other countries by paying them less while welfare state exploit tax payers who work hard to make a living.

References

Riphahn, R. T. (1999). Income and employment effects of health shocks a test case for the German welfare state. Springer, 12(3), 363-389. Retrieved on April 24 2013 from

<http://0-www.jstor.org.mylibrary.qu.edu.qa/stable/20007636>

Thane, P.(2008). The Origin of the Welfare State in England and Germany, 1850-1914: Social Policies Compared (review). Journal of Interdisciplinary History 39(2), 269-270. The MIT Press. Retrieved April 24 2013, from Project MUSE database.Lazarus, A. A. (2001). Multinational corporations. Retrieved on April 24 2013 from

<http://www0.gsb.columbia.edu/faculty/bkogut/files/Chapter_in_smelser Baltes_2001.pdf>

Winston, M. E., & , (1999). Human rights and international political economy in third world nations: Multinational corporations, foreign aid, and repression. The Johns Hopkins University Press, Retrieved on April 24 2013 from

< http://0-muse.jhu.edu.mylibrary.qu.edu.qa/journals/human_rights_quarterly/v021/21.3br_meyer.html>