The Impact of Multinational Cooperation on Global Business Politics
Abstract:
This paper examines the relationship between
multinational corporations and international politics. Specifically, it seeks
to determine how MNCs shape foreign policy through lobbying and corporate
diplomacy, how MNCs further their economic interests in complex political
environments, and how MNCs meet obligations to home countries while accepting
global roles. The research utilized a mixed-methods approach. The qualitative
research included a thematic analysis of company statements, policy documents,
literature, executive experts, and policymaker interviews. In contrast,
Quantitative data analysis tested the hypotheses on the relationships among MNC
attributes, policy outcomes, and economic performance. Further, Reading
reports, press releases, and selected case studies helped shed light on
cross-industry and cross-country variations in the nature of MNC activities and
the context-specific influences. From the analysis, the study found that MNCs
have great effects on the politics of a country through influence on its
foreign policy, lobbying, and corporate diplomacy. For instance, Regression
analysis showed a very significant correlation between the size and
industry of MNCs with political power. Additionally, the study found that
MNCs actively promote their economic interests by engaging in strategic
activities, partnerships, and lobbying. Further, Regression models and residual
diagnostics confirmed that the MNCs significantly affect the home country's
foreign policy and economic interests. The study findings are important to
policymakers, companies, and investors in understanding how MNCs influence
policy and business decisions. This paper emphasizes the role of corporate
social responsibility and ethical considerations in the operation of MNCs and
calls for public partnership in collaboration for sustainable development.
References:
[1].
Rugman, A. M., & Verbeke, A. 2004, A
perspective on regional and global strategies of multinational
enterprises. Journal of international business studies, 35,
3-18
[2].
Demirbag, M., & Yaprak, A.
2015, Handbook of emerging market multinational corporations. Edward
Elgar Publishing.
[3].
Mejía Acosta, A. 2013, The impact and
effectiveness of accountability and transparency initiatives: The governance of
natural resources. Development Policy Review, 31,
s89-s105.
[4].
Noland, J., & Phillips, R. 2010,
Stakeholder engagement, discourse ethics and strategic management. International
Journal of Management Reviews, 12(1), 39-49.
[5].
Haidar, J. I. 2012, The impact of
business regulatory reforms on economic growth. Journal of the Japanese
and international economies, 26(3), 285-307.
[6].
Paulo, S. 2014, International cooperation
and development: A conceptual overview. German Development
Institute/Deutsches Institut für Entwicklungspolitik Discussion Paper, 13.
[7].
Yuan, W., Bao, Y., & Verbeke, A. 2011,
Integrating CSR initiatives in business: An organizing framework. Journal
of Business Ethics, 101, 75-92.
[8].
Leung, L. 2015, Validity, reliability,
and generalizability in qualitative research. Journal of family
medicine and primary care, 4(3), 324.
[9].
Chen, J., Chen, Y., & Vanhaverbeke,
W. 2011, The influence of scope, depth, and orientation of external technology
sources on the innovative performance of Chinese firms. Technovation, 31(8),
362-373.
[10]. Bystrykh,
L. V., Verovskaya, E., Zwart, E., Broekhuis, M., & De Haan, G. 2012,
Counting stem cells: methodological constraints. Nature methods, 9(6),
567-574.
[11]. LeCompte,
M. D. 1987, Bias in the biography: Bias and subjectivity in ethnographic
research. Anthropology & education quarterly, 18(1),
43-52.
[12]. Mahmood,
S. T. 2011, Factors affecting the quality of research in education: students’
perceptions. Journal of education and practice, 2(11&12).
[13]. Bradbury,
J. A. 1989, The policy implications of differing concepts of risk. Science,
Technology, & Human Values, 14(4), 380-399.
[14]. Lather,
P. 2013, Methodology-21: What do we do afterward? International journal
of qualitative studies in education, 26(6), 634-645.
[15]. Cahyo,
W. N. 2021, February, Finding novelty of research with Systematic Literature
Mapping (SLM). In Journal of Physics: Conference Series (Vol.
1764, No. 1, p. 012186). IOP Publishing.
[16]. Maxwell,
J. A. 2021, Why qualitative methods are necessary for generalization. Qualitative
Psychology, 8(1), 111.
[17]. Guan,
A., Thomas, M., Vittinghoff, E., Bowleg, L., Mangurian, C., & Wesson, P.
2021, An investigation of quantitative methods for assessing intersectionality
in health research: A systematic review. SSM-population health, 16,
100977.
[18]. Pandey,
P., & Pandey, M. M. 2021, Research methodology tools and techniques.
Bridge Center.
[19]. Arkes,
J. 2023, Regression analysis: a practical introduction. Taylor
& Francis.
[20]. Kim,
I. S., & Milner, H. V. 2019, Multinational corporations and their influence
through lobbying on foreign policy. Multinational Corporations in a
Changing Global Economy, 497-536.
[21]. Koksal,
E, 2006, The Impact Of Multinational Corporations On International
Relations. https://etd.lib.metu.edu.tr/upload/12608016/index.pdf
[22]. Li J.
2021, In Pursuit of Fairness: How Chinese Multinational Companies React to U.S.
Government Bias. Harvard International Law Journal, 62(2),
376-427.
[23]. Foley, C. F.,
Jr., J. R., & Wessel, D. 2021, Global goliaths:
Multinational corporations in the 21st-century economy (Summary). Brookings
Institution Press.
[24]. Aguilera,
R. V., & Grøgaard, B. 2019, The dubious role of institutions in
international business: A road forward. Journal of International
Business Studies, 50, 20-35.
[25]. Yeganeh, H.
2019, A critical examination of the social impacts of large multinational
corporations in the age of globalization. critical perspectives on
international business, 16(3), 193-208
[26]. Burton,
J. W., Stein, M. K., & Jensen, T. B. 2020, A systematic review of algorithm
aversion in augmented decision making. Journal of behavioral decision
making, 33(2), 220-239.
[27]. Hall, I.
2019, Modi and the reinvention of Indian foreign policy. Bristol
University Press.
[28]. Negandhi, A. R.
2013, Functioning of the multinational corporation: A global comparative
study.
[29]. Egelhoff,
W. G. 1982, Strategy and structure in multinational corporations: An
information-processing approach. Administrative Science Quarterly,
435-458
[30]. Noland,
M., & Pack, H. 2003, Industrial policy in an era of globalization:
Lessons from Asia (Vol. 69). Peterson Institute.
[31]. Murphy,
C. 2006, Competitive intelligence: what corporate documents can tell you. Business
information review, 23(1), 35-42.
[32]. Yin,
R. K. 2009, How to do better case studies. The SAGE handbook of applied
social research methods, 2(254-282)
[33]. Hillman,
A. J., Keim, G. D., & Schuler, D. 2004, Corporate political activity: A
review and research agenda. Journal of Management, 30(6),
837-857.
[34]. Irogbe,
K. 2013, Global political economy and the power of multinational
corporations. Journal of Third World Studies, 30(2),
223-247.
[35]. Gratton, C.,
Liu, D., Ramchandani, G., & Wilson, D. (2012). The global economics
of sport. Routledge
[36]. Ballor, G. A.,
& Yildirim, A. B. 2020, Multinational corporations and the politics of
international trade in a multidisciplinary perspective. Business and
Politics, 22(4), 573-586.
[37]. Gil-Garcia, J. R., Helbig, N., & Ojo, A. 2014, Being smart: Emerging technologies and innovation in the public sector. Government information quarterly, 31, I1-I8.
