Multinational

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The Rights and Responsibilities of Multinational Companies in a Globalized World Multinational companies are the biggest players in economy today, replacing the role states used to play in the past. Through globalization, the multinational companies become increasingly important in our world economy. Nowadays, more than half of the top economies in the world are led by multinational private companies and the international investment comes increasingly from private sources. Foreign Direct Investment (FDI) and globalization is very important for the development of developing nations, as multinational companies have the necessary capital and technological know-how to develop industrial, financial and service sectors that promote development of whole economies. Furthermore, these investments provide employment, which increases the income per capital. In the 90s, the developing economies (such as South East Asia), which were integrated into the global economy, developed twice as much as the developed economies did. Those that weren’t integrated, though, lagged behind and thus, differences in living standards in developing nations were the result. During the 90s in East Asia, the number of people living in extreme poverty was nearly halved, while in Sub-Saharan Africa the number increased approximately by half. This proved that multinational corporations and the FDI can have a positive impact on the elimination of extreme poverty in developing regions. However, there are still some problems in regards to the FDI and multinational companies. The raise in economies of South Asian nations does not match to their development in the UN Human Development Index (HDI). The reports of UN agencies repeatedly report bad working conditions in this region. Thus, UN agencies try to improve the bad working environments caused by the multinational companies in regard to human rights. Doing that, they do not try to discourage business investments in developing nations, but they work...
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