Question

More and more global business firms are becoming stateless corporations. Do you think this may benefit the world economy? Why or why not?

Answer 1

Companies having their operation in multiple nations, so called MNC (Multi-National Companies or MNE (Multi-National Enterprises also referred as stateless corporations are considered to be good for the International trade (imports and exports) in number of goods and services.

Therefore, as per my understanding, global business firms are good for the development of world economy. MNC/MNE are in the knowledge of the opportunities available in different parts of the world. Companies may move the surplus available resources from one economy to the deficit economy because of their presence at both the places. Similarly, transfer of modern or latest technology from one place to other may be facilitated by global business firms.

At times, there is fear about the operations of MNCs on account of giving tough competition to the local or small scale operations of single state corporations. It is also feared that some polluting industries are being shifted from the developed nations to the underdeveloped world and MNCs serves better to the rich (strong) ones at the cost or exploitation of the poor (week).

As per my understanding, with strong political and social, legal systems well placed in most nations, it is possible to benefit the world economy through better co-operations and co-ordinations rather than having confrontations among those whose operations are considered to be important for the world economy (mining of ores, oil, refineries,energy resources, employment for manpower, environmental issues etc etc) , irrespective of being MNC, MNE, Stateless, and State owned corporations or national companies.

Answer 2