Exam Review Notes on Multinational Corporations (MNCs)

Economic Importance and Power of MNCs

  • MNCs are crucial to the global economy.
  • Source A (2016) shows that the largest companies are MNCs (e.g., Apple, Microsoft, ExxonMobil, Amazon, Facebook, Johnson & Johnson, GE).
  • Case studies: Apple's manufacturing in China, tax strategies in Ireland.

MNCs are NOT of Essential Importance

  • Arguing against the central importance of MNCs can be done by highlighting the importance of other factors.
  • Other important factors in global politics: IGOs, countries/states.
  • The sources may lead to a discussion about human rights.

Thesis Statements

  • A strong thesis should directly answer the question: Are MNCs of central importance?
  • Example of a thesis: "While MNCs are overarching with the global politics, they're constrained by the system state sovereignty."
  • Ensure claims relate back to the main arguments of the class.

Techniques for Success

  • Claim 1: MNCs wield soft power because of their necessity in the world's economy (supported by Source C).
  • MNCs have influence due to their appeal to world order.
  • Source A: Technologies dominate top charts.
  • Facebook's power through data and connecting the world.
  • Rohingya genocide case study: failure of content retargeting.
  • Claim 3 potentially addresses poor human rights records, but needs to directly link it to the central importance of MNCs.
  • Example: MNCs are of central importance to human rights enforcement because they're often defined by violations.

Influence of MNCs

  • MNCs can be both economic catalysts for development and sources of human rights violations.
  • Economic catalyst: Source C supports the idea that MNCs contribute to GDP and the global economy.
  • Microchip industry in Taiwan as a case study: Taiwan's economy relies on microchips; they make 95% of computer manufacturing.

Human Rights Violations

  • Blowback effect: MNCs and human rights violations (Source D).
  • Example: MNCs avoid auditing and rights for labor violations.
  • Niger Delta case study: Shell oil and environmental devastation.

Diplomacy

  • MNCs benefit and hinder diplomacy between countries.
  • MNCs operate on a regional scale and can connect countries diplomatically.
  • US and China EV tariff argument hinders diplomatic relationships.

General Tips

  • Include 4 case studies.
  • Reference the source and use your own information in every paragraph.
  • Information from the case study should back up source information.

Example Thesis

  • "While MNCs are of increasing importance in global politics, ultimately, states remain of central importance."
  • Claim 1: MNCs drive international economic growth (Source A, Ireland tax haven, Apple).
  • Claim 2: MNCs are essential to economic global governance (Source C).
  • Claim 3: MNCs and states are both involved in human rights abuses (Fast fashion, Source D).
  • Claim 4: Sovereign states are important to international relations (Source D, US-China Trade War).