Compare and contrast the positions of one or more neo-Marxist or Essay

Compare and contrast the positions of one or more neo-Marxist or post-Marxist theorists of ideology with those of the classical Marxist tradition - Essay Example It is reasonable to assume that public sentiment and government economic policies (usually informed by contemporary economists noted above) are pulling in opposite directions. And the tensions created by these opposing tendencies are already giving rise to widespread social unrest, as shown by the emergence of the global solidarity movement and the World Social Forum. (Frankel,1997, p.58) In this context, it makes for an interesting exercise to understand contemporary interpretations, revisions and adaptations of Marxism, which have come to be termed variously as neo-Marxism and post-Marxism. Some of the leading figures in the neo-Marxist movement are Georg Lukacs, Antonio Gramsci, Max Weber, Karl Korsch and others. To a lesser extent French existentialist philosopher Jean-Paul Sartre and Frankfurt School founders Max Horkheimer and Theodor W. Adorno contributed to the broader understanding of traditional Marxist theories. One of the driving forces for neo-Marxist and post-Marxist thought is the perceived inadequacies of conventional Marxist ideology in explaining and providing solutions to common politico-economic problems. For example, in the century and a half that has passed since Marxs original theoretical formulation, only a few violence-ridden revolutions have taken place – a fact that belies Marxs prophecies on communist revolutions. The establishment of socialist regimes at the end of such revolutions too have not lasted for long (barring the case of China). Even politically overhauling events such as the two world wars have not spurred the implementation of communist ideology in a meaningful manner. While the erstwhile Soviet Union was nominally a communist state, in reality it was a brutal dictatorship not hesitant to crack the whip on its own masses. In the case of China, which is considered the last bastion for Marxist

Admission Essays for EMBA Admission - The University of Chicago Booth Essay - 1

Admission Essays for EMBA Admission - The University of Chicago Booth School of Business - Essay Example My current key engagement is the implementation of the new Cloud Computing Hosting Centres for the utility based services provider iTricity at Belgium, The Netherlands and Luxembourg (IBM, 2008). Cloud computing represents a new paradigm in the manner computing will be done in business enterprises. The potential of cloud computing as a business activity is very large, with estimates suggesting that the market for cloud computing in the next five years will touch $95 billion (King, 2008). Cloud computing is an emerging technology for Information Technology that provides rapid delivery of computing resources that a business enterprise requires. These resources like computing services, storage services and networking services are made available in a simplified way and on demand. Such an approach makes for rapid innovation and management of these innovations (IBM, 2009). My role in IBM’s activities in the new cloud computing services is to help business enterprises, irrespective of size, to make use of the opportunities presented by this effective computing model (IBM, 2008). My experiences as a project manager implementing innovative projects have led me to believe in the advice of Drucker 1985, p. 98 that â€Å"knowledge-based innovations can be temperamental, capricious and hard to direct†. Interacting with business leaders to understand customer what customers want and how this innovative technology would boost their business activities are an essential component of my role in the successful development of the cloud computing networks of IBM (Bower & Christensen, 1995). The purpose of cloud computing centres is to provide a solution to business enterprises, currently facing issues of ever increasing hardware and application software for their computing needs, and I will need to be able to convince business leaders that this innovative solution will create value for them (Sawhney, Wolcott & Arroniz,

Fastenal Case Essay Example for Free

Fastenal Case Essay The comprehensive document is an overview of Fastenal Canada LTD and how it relates to sales management. The document first provides an introduction to the problem and company background of Fastenal, which includes a description of various views of Fastenal. It further goes into detail about the recommendations that relates to the two main parties involved, which are the customers and the company itself. The document also includes an in-depth implementation plan, which is broken down into short, medium, and long-term tasks to accomplish. Through out the document there is a mention of the vendor managed inventory model (VMI). By using VMI, we were able to use a different approach to avoid risks associated with the â€Å"bricks and mortar† approach. Fastenal should choose to implement the following business plan because a well thought out analysis went into determining the problem and coming up with a solution for the future growth of the company. All decisions were made with the company in mind and focusing on the strong relationship between the costumer and Fastenal. Introduction Fastenal Canada LTD is a subsidiary of Fastenal Company, which was founded in 1967. Fastenal Canada LTD operates as a wholesaler and retailer of industrial and construction supplies in Canada. They have over 200 stores across Canada, 66 of which are in the western region. Fastenal’s growth strategy has always relied heavily on new store opening because the high demand for its products and services across Canada (Fastenal, 2012). It tends to be risky as well as costly when opening stores using the â€Å"bricks and mortar† approach. The introduction of the vendor managed inventory model (VMI) has been advantageous. Fastenal receives an electronic data via email, informing them of its distributor sales and inventory stock level. This system makes it fast and efficient for the customers and sales associates. Fastenal interprets the electronic data and there is an automatic responsibility of maintaining the inventory level for the customer. Fastenal is looking for a different expansion model approach to be used as a growth driver in Western Canada. Our new proposed strategy gives Fastenal the ability not only maintains its desired identity but it gives them the ability to increase the market share and tap into a fresh new market. Our goal is to assess the situation in hand and work in the given environment to keep the strong customer relationships since it is an important component in the company. Problem Definition How can Fastenal use its new vendor managed inventory model to increase its market share? End market sales during the months of 2012 grew 19.8% from the manufacturing customers while the residential construction customers grew 17.9% (Fastenal, 2012). The advantage to VMI is that it releases the customer of having to worry about the level of their inventories. Fastenal interpret the electronic data and automatic take control of the responsibility of maintaining the inventory level for the customer. How can Fastenal reduce financial risk? Every scenario where there is a change in the way things are done or achieved there is always risks to failure or loss. In many cases where there is loss or failure, there is often a way that it could have been avoided or done differently to avoid the negative outcome. Fastenal needs to avoid these situations by planning ahead and finding ways to avoid the risks that may pose problems or loss in the near future. â€Å"Bricks and Mortar† approach induces many financial risks so another approach is necessary to prevent them. Situation Analysis Customers and the sales force are the stakeholders who are most affected. Strong customer relationships are the essence of Fastenal’s success and form an important component of their competitive advantage. The problem arises due the to lack of education the customer has about ordering online which deceases the efficiency PartStore has to offer. Ordering online reduces rushing the parts to the counter or waiting on the phone. Customers are also able to check parts availability and prices, as well as place an order. However when PartStore was introduced there was some confusion with it. Creating a frustrating relationship between the customer and sales person. Recommendations Consignment Inventory Consignment inventory usually involves the supplier, placing inventory at a customer’s location without getting rid of its ownership of the inventory. Since the owner retains the ownership of its products the customer does not pay until it is sold or used. However, before we examine how Fastenal can benefit from our proposed consignment program it is important to first examine some potential market of interest. The City of Edmonton According Edmonton’s 2012 budget report, almost all municipalities across Canada face a significant infrastructure deficit. Neighborhood renewal occurred periodically with funding from other orders of government, yet it failed to address the full life-cycle requirements of preventative maintenance, rehabilitation, and reconstruction. Over time, the condition of roads, sidewalks and sewers deteriorated, resulting in more frequent collapsed sewers, increased sidewalk hazards, and dramatically increased maintenance like pothole repairs. The Office of Infrastructure and Funding Strategy highlighted the need for ongoing funding for neighborhood infrastructure to overcome an anticipated $2.2 billion funding gap in neighborhood roads and related infrastructure. This situation provides a tremendous opportunity for Fastenal to penetrate and serve this market. Market potential The total number of potential infrastructure that needs to be fixed in any given time is the market. The market potential for Fastenal products in units would be equal to the number of potential infrastructure that require repairing, assuming that each infrastructure repair would use Fastenal product. Fastenal can benefit for inventory consignment within the city of Edmonton, however administration is important to understand how the current business model can be used to Fastenal’s advantage in delivering the services. FAST 5000 is a vending machine that provides workers with immediate access to materials and equipment’s. The FAST 5000 machine is installed at customer sites and Fastenal keeps them filled with needed products ranging from safety equipment’s, cutting tools supplies to office supplies. Fastenal handles everything from the delivery of the machines to the installation and restocking of the machine whenever the inventory level becomes low. Through the flexible web reporting system Fastenal customers are able to view and manage the machine’s inventory usage. Cory Jansen, Fastenal’s Vice President of Internal Operation have claims that having the FAST 5000 have reduced production consumption in many cases by more than 30 percent (City of Edmonton, 2012). In the midst of 2.2 billion dollar worth of infrastructure repairs that the city of Edmonton needs, someone will have to supplies this market with their required materials and tools to complete the repair work. Fastenal should approach the city of Edmonton with a proposal outlining how the FAST 5000 can be beneficial to the construction site and within the city offices. The city of Edmonton as a corporation serves a population of more than 750,000 residents; the corporation is segmented into seven different departments each department is responsible for providing a particular service to Edmonton residents. We suggest that Fastenal concentrate on the four main departments within the corporation that is more likely to benefit from the FAST 5000 or the FAST 3000 services, which are the: Office of the City Manager, Sustainable Development, Transportation Services and Infrastructure Services. Office of the City Manager will benefit from the FAST 5000 if Fastenal stocks them with office supplies, such as pens, pencils, papers, etc. Since each development must akin to a strict budget the FAST 5000 can provide the solutions to maintaining those budget, by reducing product consumption, having on-hand inventory, and administration costs, while providing new insight into usage and spending habit that can be used toward next years City budget. Fastenal can implement the same strategy within other municipalities across Canada. Implementation Fastenal needs to place a unit in each site under the City of Edmonton. We believe it to be reasonable to set one to three year goal to place a FAST 5000 machine in each site over the next three years. First step is to write up a proposal to bring to the Simon Farbrother, who must approve it. He is the city manager and makes the major decisions in these cases. This process can take up to three months to be able to present the proposal. This also creates awareness of the product to the potential client. The proposal must go through other levels of approval and be voted on by the city council, therefore this may take another three months. Once the plan is approved the production and distribution can be put into motion. The city of Edmonton has many different branches and sites in the Edmonton area. The marketing department in Fastenal will start to put together the proposal and presentation. The marketing department will create a miniature FAST 5000 as part of a press kit along with a formal written proposal. The press kit will also open up and contain testimonials from previous clients Fastenal has worked with. It will also have a brief description of the key factors and attributes of the FAST 5000 and what sets it apart from prior units. Once the plan is approved, Fastenal will be required to submit the bet to the city manager. Since Fastenal is the sole provider of the vendor managed inventory systems (FAST 5000, FAST 3000). This implies that there is only one supplier that can fulfill the requirement and that any attempt to obtain bids would only result in one supplies being able to bid on the contract which is Fastenal. The bid will contain the benefits and costs of going through with the deal and the estimated completion date of placing the units in different sites throughout Edmonton. Once the city has awarded them the contract they will immediately move forward, and Fastenal will provide the services as stated in the proposal. Fastenal will place the minimum required machines in each site as outlined by the contract. Time Line Immediately| Delivering units| Week 1| Submitting a bid| Week 2| Proposal| 3 months| Meeting with Simon Farbrother | 3 months| Vote by city council| 6 months| Full Approval| TBA| Expansion into further sites and markets| Budget Since we do not have any costs that are being associated with this project our cost is zero, therefore the budget is not present. Risk and mitigation Risk| Mitigation| Underperformance of sales force | * Bring on a skilled team * Have the team mentor new people * Make teamwork part of the culture * Hire skillful and enthusiastic employees | Sales loss on FAST machines| * Proper training * Information to customer about store * Finding good location| Unrealistic customer and schedule expectations| * Make the customer feel comfortable and at ease * Set schedule goals around frequent deliveries | Conclusion The problems we wanted to address were â€Å"How can Fastenal use its new vendor managed inventory model to increase its market share?† and â€Å"How can Fastenal reduce financial risk?†   Our new proposed strategy gives Fastenal the ability to not only maintains its desired identity but it gives them the ability to increase its market share and tap into a fresh new market. Strong customer relationships are the essence of Fastenal’s success and have formed an important part of their competitive advantage. Our business purposed plan intended to keep the strong customer relationships. Through our implementation approach we have demonstrated how Fastenal can transform it’s current solution into a continued transparent business model. Fastenal’s opportunities will be awarded by the skill and creativity they have to meet the customer demands. Reference City of Edmonton. (2012). Budget. Retrieved April 2012, from http://www.edmonton.ca/city_government/budget_taxes/budget-2012.aspx Fastenal. (2012). Fastenal . Retrieved April 2012, from http://www.fastenal.com Mackenzie, H. (. (2008). Sales Managment in Canada (1st Edition ed.). (D. Thompson, Ed.) Toronto, Ontario, Canada: Person Prentice Hall.

Marketing Essays E-Business Marketing

Marketing Essays E-Business Marketing E-Business Marketing E-business marketing is the conduction of transaction (commercial) by using the telecommunication systems. The widespread use of the internet has increased the competency of the companies to conduct their business more accurately at a high speed and with huge coverage at a minimized cost. Apart from this, it has helped in providing customized services to the target market. As a result, innumerable companies have created web sites in order to provide information and promote their services and products. E-business plays an important role in building their sales by getting an access over the people across the world (Kotler, 2002). E-marketing strategy In order to formulate an effective E-marketing strategy, it should be aligned fully with the organization’s overall business objectives. The main purpose of an e-Marketing Strategy is to generate a long term competitive advantage and focus on enhancing the performance by capitalizing on resources of enterprise and technology. Building of effective strategy requires thorough research, intense planning, experience, analysis, and deep information about the online industry. The Strategy for e-Marketing is based on the principle of offline marketing i.e. 4 Ps: Product – Price – Promotion –place, and Added 3 Ps like People – Processes – physical evidence. The uniqueness in e-Marketing lies due to its seven main features such as: Personalization, confidentiality, better Service to the Customer, Community, digital media, Sales Promotion and Security (Krishnamurthy Singh, 2005). 1. Personalization: It means identifying and recognizing the needs of the customer in accordance with trends in the market. 2. Privacy or confidentiality: in e-Marketing, this indicates that the gathered information is safe and is used in apt manner from collection to the storage of data. Privacy plays a significant role as many legal aspects are associated with the use of such information. 3. Better Customer Service: e-Marketing focuses on building the relational viewpoint and in this transactional system; Customer Service plays an important role. 4. Community: as the number of members increases, it leads to the formation of the community. Therefore, developing the community is the key role to be played in the e-marketing 5. Site or digital media: It is the location where the interaction takes place. The digital technology helps in making it accessible at any moment and place. 6. Security: as the transaction begins on the internet channels, security function plays a vital role. The security system should prevent the unauthorized access of a third party over the transaction. Therefore, it is important for the e-marketing business to develop confidence in the customers regarding the safety of the transactions. 7. Sales Promotion: in building the e-marketing, sales promotion plays a vital role, as it helps in achieving sales growth in terms of volume. Here the marketer is supposed to apply his innovation. And he is also required to use the advanced internet technologies and promotional plan (Krishnamurthy Singh, 2005). Marketing tool and technique If identified properly, marketing tools help in guarantying long term success for the organization. Review of the right target audience must be done at the initial stage. For B2C, the end user forms target audience. Therefore, proper attention must be given to identify the needs of end user. On the other hand, for B2B, the customer serves as the distributor and as a result, the marketing of this business becomes quite difficult. In B2C and B2B, customer identification and creative internet site that can attract the right customers are essential. B2C: Business-to-Consumer websites are the mediator portal between the consumers and the suppliers. They help the businesses in connecting with their customers and in keeping their loyalty. Some of the major portals of B2C website are eBay (an auction site), ZDNet (a technology market place) and Yell (an internet version of yellow pages) that exists on the internet. The eight common features of business-to-consumer website are Sophisticated session control User log-in Shopping Basket system Anywhere, anytime information More convenient and faster shopping Privacy and Security of customer information Internet Company with marketing focuses on meeting the direct needs of end customer. The internet site fulfills the needs of customer and make successful sale. The web site finds numerous ways to attract the attention of the customer. For example: Amazon.com and Dell Inc. provide very good examples of a B2C intelligent e-business success story. The benefits provided to the customers by Dell Inc. include: access to the information anywhere at anytime and a proper co-ordination and communication. It also provides its customers with the benefit of self-help service and support. It provides the opportunity of forming a partnership with a leading e-commerce player along with detailed information about the products, solutions and services (Cao, Zhang Seydel 2005). B2B: In this, the business provides several products and through the receiving business, it meets the need of the end customer. The approach followed in this business is customer-based marketing. Therefore, they focus in designing the products and services according to the demands of the customers. Initially, they market their products to the distributors and develop way for entering the market in selected products and also create the sales environment for the products so that it can easily meet the needs of the target customers. By making the use of the B2B, the portal of the company can forward the incoming business to specific pages so as to have improved order techniques, inventory control and customer needs for example: e STEEL. Therefore, the marketing tool plays a vital role in the B2B and B2C (Ramaswamy Namakumari, 2007). Difference between the B2C website and B2B website Different strategies are used in the business-to-business environment. It uses routes like: advertisement in the form of pop up, e-mail and banner advertising in business. B2B and B2C can be differentiated on the basis of the following points: Objective: E-mail in B2B business is concerned with the production of lead; on the other hand in B2C, it refers to the transaction of the sale. In B2C, after consumer reach to the landing page, the next step is the evolution to the shopping cart and checkout page, where as in the B2B, e-mail marketing campaign itself acts as a source of marketing. Permission: In B2B transaction, permission involves a guarantee that the shared information will be kept confidential and as a result, the lead will be generated in more numbers where as in B2C, dealings demand receiving permit in a dissimilar way. Here an enterprise will insure the customers that they have the power to cop out of farther e-mails (Weil, 2002). Challenge in Copyrighting: In B2B, an e-mail must have the eye catching phrase on the subject of e-mail. Where as, in B2C the WIIFM acts as an important factor. The customers need to know that there is something relevant for them. B2C transactions are easy to maintain as compared to the B2B (Weil, 2002). Conclusion Broad use of internet has led to the development of B2C and B2B. In these businesses, deep understanding of the customer is required. The use of latest technology and the proper understanding will allow huge success. Both these e- businesses have provided the customers with the convenient options. A customer can easily gain the information of the product online and can also close the sale online. In order to make e-business successful, proper E-marketing strategy should be formulated and implemented and according to the target market, the marketing tools should be used. References Cao, M., Zhang, Q Seydel, J. (2005). B2C e-commerce web site quality: an empirical examination. Industrial Management Data Systems 105(5): 645-661 Kotler, P. (2002). Marketing Management (11th Edition). New Delhi: Prentice Hall of India Private Ltd. Krishnamurthy, S. Singh, N. (2005).The international e-marketing framework (IEMF): Identifying the building blocks for future global e-marketing research. International Marketing Review 22(60): 605-610 Ramaswamy, V.S. Namakumari, S. (2007). Marketing Management (3rd Revised Edition). New Delhi: Macmillan India Ltd. Weil, D. (2002). B2B versus B2C Email Marketing: Five Differentiators. Retrieved May 21, 2008 from http://www.clickz.com/experts/em_mkt/b2b_em_mkt/article.php/994371

European Colonialism and Imperialism in Shakespeares The Tempest Essay

European Colonialism and Imperialism in Shakespeare's The Tempest William Shakespeare’s play The Tempest reveals how ideologies of racial ‘otherness’ served to legitimize European patriarchal hegemony in Elizabethan England. In the Elizabethan/ Jacobean times of England there were many relevant ideologies relevant to this play. In examining the values and ideologies this text endorses and challenges, the society of the time (Elizabethan England), and a knowledge of how it operated serves a great purpose in analyzing these relationships. As in many texts of this time, Shakespeare is endorsing many ideologies of his time, and, although many have labelled him ahead of his time in many respects in his writing, he is, essentially writing from the Elizabethan or Jacobean point of view and time. The Tempest endorses the inequitable relationships between races based upon the belief of European superiority. The representation of race and ethnicity in The Tempest reveals a text that is awash with imperialist European ideologies. In a play which usurpation is a dominant theme, Shakespeare endorses Prospero’s appropriation of the island and it’s aboriginal population. The representation of Caliban and his brother Sycorax reveals the extent to which racist and sexist ideologies function to maintain the balance of power in the hands of a small, ruling, elite. Indeed, it should be noted that The Tempest is more than a simple play. Rather, it is a complex and multi-layered literary construction. As it cannot be reduced to the single issue of race to investigate the imbalance of power in the play. Attention must be given to the way patriarchal notions of gender inform racial representations in order to understand the imbalances of power i... .... An investigation into the imbalance of power in the play reveals the ideologies of race and gender that drive the power dynamics of the play. The construction of the inferior nature of non-European characters is firmly grounded in imperialist, European and patriarchal values. The Tempest presents the appropriation of the island and it’s inhabitants by Prospero’s imperial patriarchal regime as entirely natural and inevitable, based upon the inherent inferiority of the original population. In doing so, the play is a precise repetition of imperialist rhetoric, which legitimizes European annexation of ‘other’ lands and peoples over which they have no legitimate claim. Bibliography/ Works Cited Shakespeare, W. The Tempest. Ed. Sutherland, J.R. (1990) G. Wilson Knight, (1932) The Shakespearean Tempest, Oxford B. Thompson, (1995) Notes on The Tempest

Bullies :: Free Essay Writer

Bullies Upon reading last Sunday’s issue of the newspaper, then scanning the Editorial Pages my eyes were drawn to thick black letters entitling a column â€Å"Time to pick on bullies†. This editorial of Bill Thompson immediately laid claim that after a school shooting, news follows that the shooter was â€Å"bullied† by fellow students. Seeing where this topic was headed, I was intrigued to read on. After a short reminiscent review of how kids used to either tolerate the ridiculer, or as Mr. Thompson wrote, resort to an â€Å"old fashioned schoolyard fist fight.† He then began fortifying his stand on the issue. Three schools, which, fell victim to such a crime as a school shooting were used as examples. The first, Santana High School in Santee, California. Secondly he mentioned a Catholic school in Williamsport, Pa. And finally, the school which broke in this sick trend, Columbine High school in Colorado. Now, by this point I was wondering if I had picked the wrong columnist, but out of nowhere I saw his whole case fall apart. He writes, and I quote, â€Å"We are ready, willing, and able to blame the epidemic of school shootings on the right to bare arms, on the shooters parents, on violent music, video games and TV shows. Why don’t we want to place some blame on the bullies who drive these kids to murder?† It was after reading that statement that I knew I’d picked a winner. I mean, was this guy serious? To place blame on our right to bare arms makes for good sense because it answers the question of how these kids are arming themselves. As for blaming the shooters parents, that topic alone spans the spectrum of parented morality. Our environment growing up whether it is where we live, to how our parents cared for us, all aspects of our childhood good or bad carry with us through life eventually molding us into adults. And when it comes to the level of violence in music, video games, and television that simply boils down to parental decision. The entertainment industry rarely slows its money machine to consider the welfare of its listeners and viewers. To be perfectly honest, I don’t feel it should have to. These quotes left me even more aggravated at how society is viewing this problem. It’s as though they’re reaching for explanations as to why. Well how will we ever be able to answer that? Bullies :: Free Essay Writer Bullies Upon reading last Sunday’s issue of the newspaper, then scanning the Editorial Pages my eyes were drawn to thick black letters entitling a column â€Å"Time to pick on bullies†. This editorial of Bill Thompson immediately laid claim that after a school shooting, news follows that the shooter was â€Å"bullied† by fellow students. Seeing where this topic was headed, I was intrigued to read on. After a short reminiscent review of how kids used to either tolerate the ridiculer, or as Mr. Thompson wrote, resort to an â€Å"old fashioned schoolyard fist fight.† He then began fortifying his stand on the issue. Three schools, which, fell victim to such a crime as a school shooting were used as examples. The first, Santana High School in Santee, California. Secondly he mentioned a Catholic school in Williamsport, Pa. And finally, the school which broke in this sick trend, Columbine High school in Colorado. Now, by this point I was wondering if I had picked the wrong columnist, but out of nowhere I saw his whole case fall apart. He writes, and I quote, â€Å"We are ready, willing, and able to blame the epidemic of school shootings on the right to bare arms, on the shooters parents, on violent music, video games and TV shows. Why don’t we want to place some blame on the bullies who drive these kids to murder?† It was after reading that statement that I knew I’d picked a winner. I mean, was this guy serious? To place blame on our right to bare arms makes for good sense because it answers the question of how these kids are arming themselves. As for blaming the shooters parents, that topic alone spans the spectrum of parented morality. Our environment growing up whether it is where we live, to how our parents cared for us, all aspects of our childhood good or bad carry with us through life eventually molding us into adults. And when it comes to the level of violence in music, video games, and television that simply boils down to parental decision. The entertainment industry rarely slows its money machine to consider the welfare of its listeners and viewers. To be perfectly honest, I don’t feel it should have to. These quotes left me even more aggravated at how society is viewing this problem. It’s as though they’re reaching for explanations as to why. Well how will we ever be able to answer that?

The Impact of Transnational Corporations on Less Economically Developed Countries

A transnational (TNC) corporation is simply a large business organisation which operates and has ownership of assets in more than one country. Most TNCs operate in just a few countries, are involved in manufacturing and services and have their head offices in more developed countries. TNCs are responsible for employing over 40 million people worldwide, indirectly influence an even greater number, and to control over 75 per cent of world trade. At first, many branches of TNCs were located in economically less developed countries, but there has been an increasing global shift to the affluent markets of Europe, North America and Japan. The reason why TNCs originally decided to locate in less developed countries was due to the existence of valuable resources, but the most important reason was the level of incentives offered by the home government. Also read this  Cheating in a Bottom Line Economy If a TNC decides to settle in an LEDC, there will be huge benefits. Many new jobs will be created, which will be filled by local labour. The jobs will probably be better paid than other jobs supplied by industry which developed within the country. On the other hand, the wages will be much lower than the wages given for the same job in an MEDC. This is another reason why TNCs choose to create branches in LEDCs. The jobs supplied by the TNC will probably require some basic skills, especially if it involves the manufacture of a good. The education will be supplied by the TNC, and will probably be of a fairly high standard if they want the branch to be very productive. The employees will benefit from these skills, because they would be able to use them in other aspects of their lives. The TNC will supply the expensive machinery used in manufacturing for the employees, which may also introduce new technologies as well. This will enable the country to progress and allow companies to use the new technology to develop. Because worker wages is increasing, demand for consumer goods will increase as well, another reason why new companies will be tempted to develop. Mineral wealth and new energy resources will develop, Because there is more trade in the country, there will be more reason for roads to be built, as well as railways and airports. The TNC may help fund the development of these because it will improve the importing and exporting ability of that country. The government will probably supply money for the transport links as well, due to the increasing amount of money coming into the country. The increased amount of money made by the country can also be used for many other things. Health control could be introduced, which means workers will be given improved working conditions and health plans. This could also help to improve output further because workers will be in a better environment and mood to work. Money can also be used for environmental control, which could include developing ways of minimizing the amount of pollution certain industries create and even developing new production methods. Although the advantages to the country are numerous, there is a negative side which includes many disadvantages. Although the new TNC will supply many jobs, the cost of investment will be high. The new TNC will know that wages in the target country are very poor and so they will not have to pay workers as nearly as much as they pay employees in MEDCs. This is quite unfair, because the TNC is taking advantage of the people in the LEDC. Furthermore, employees will be made to work very long hours with little or no breaks. The TNC will most likely choose not to employ local highly skilled workers, because they will expect higher salaries and better working conditions. This will mean that low skilled people will be given jobs, but higher skilled workers will remain unemployed. As previously mentioned, the TNC will most probably enjoy large profits if they set up branches in LEDCs. The problem is most of this money will not stay within the country because the main branch of the TNC will be situated in an MEDC. This means money will not stay in the LEDC; there will be an outflow of wealth. If money is going abroad, the GNP of the TNC will increase rapidly. The GNP of the LEDC used will increase as well, but at a slower rate. This means that development speed of the MEDC will far exceed that of the LEDC. This defeats one of the main reasons why TNCs setup branches overseas; they want the country to catch up with the growth rate of other countries. Technological advancements in the LEDC can eventually cause problems. Mechanisation will mean that fewer workers are needed because robots can do the jobs that the workers once did. The only workers needed will those used to maintain the machinery, which means the work force will be decreased substantially. The raw materials which are located in the LEDC will most probably be exported instead of manufactured locally. If the country is using as lot of energy to develop, then this can cause a national debt. Therefore, the rate of development will be stunted and the country will have been taken advantage of. This could cause upset within the workforce, creating strikes. This can cause further problems because the firm is not located within the country. They could choose to pull out when ether they like, meaning many jobs would be lost. This would not be a great loss to the TNC though, as they have many other branches they can rely on. The money created by these TNCs would probably be better off spent on improving housing, diet and sanitation than roads and airports for trade. The problem is that the TNC would not benefit as much from these improvements so it does not concern them. The development of new firms can damage the environment because land must cleared for factories to be built. This could destroy the natural homes of species of animals, which is very difficult to correct. Because the target country will not be aware of the amount of pollution produced by industry, the laws on pollution control will not be as tight as the country where the firm is located. This could cause health problems, especially if a lot of waste is produced and dumped into the local water supply, for example. It is clear that there are many advantages and disadvantages in terms of TNCs creating branches in other countries. The real problem is that the disadvantages mostly affect the target country, not the TNC. So until LEDCs are aware of the problems caused by firms settling in their country, the chance of the growth of TNCs slowing down is very small. This could cause the gap between the levels of development in LEDCs and MEDCs to become even wider in the future.