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Slide 1

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Can MNC's be controlled?…read more

Slide 2

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MNC's are hard to control because they go beyond
national boundaries
There isn't a world government that can force MNC's to
modify their behaviour
However, there are a range of factors that can influence
MNC's to a certain extent
Keeping MNC's under control usually takes a
combination of factors.…read more

Slide 3

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Factors affecting the ability to control MNC's
The size of the MNC
Larger companies = less affected by outside pressure (better PR etc)
The size/importance of the host government
E.g. China will be more effective than Zambia in controlling MNC's
The importance of MNC to host country
Small economies won't want to confront a company that's benefitting their
The strength of the publics opinion
Number of people, level of public awareness will affect what influence they have
Whether the publics opinion matters to the MNC
A company relying on consumers won't want protests etc. Suppliers would be less
Whether the business uses the internet to boost its image
Wouldn't want negative messages on the internet ­ would ruin their online image
The strength of a pressure group
Some pressure groups have more direct actions / know how to be a headline in the
news…read more

Slide 4

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Ways to control MNC's ­ Public Opinion
The public opinion is important
They public can decide not to buy a product because
they disapprove of the company's actions
This will persuade the company to change
The public were concerned over the media using phone
hacking. As a result the News of the World closed.…read more

Slide 5

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Ways to control MNC's ­ Pressure groups
Pressure groups are organised groups seeking to make
changes happen,
They can organise campaigns, protests or direct action.
Tescopoly is a pressure group that is concerned with the
negative impact of Tesco supermarket's power.…read more

Slide 6

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Ways to control MNC's ­ Social media/
Campaigns against MNC's are more and more likely to
make use of social media such as Facebook and Twitter
As a result information spreads much faster so people's
actions are more effective
SOMO investigates the impact of MNC's and used
Facebook, Twitter and YouTube to spread its
information and Campaigns…read more

Slide 7

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Slide 9

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