Founded after the World War II,
Cross-
national corporations have changed the nature of
international economy, or at least have complicated the international politics. The most universal standard to recognize a cross-national
corporation is its structure, with business operation ranking next to it, followed by behavior. In many respects, cross-national corporations can serve as a tool in national
policy making. The capital inflow it brings and its operation play a positive role in balance of payment. It can increase local employment rate and promote economic development by setting up branch companies in undeveloped areas in its home country. The
host country can utilize it as a lever to
influence other governments. The host country also can use it as a lever to influence its own country. As an independent behavior subject, its negative impact centers on follwing four aspects: industrial domination, technological reliance, obstruction to the implementation of national economic policy and planning and disturbance of local cultural and life style. It can dominate the local economy by its economic scale and projected superiority resulted from it, influence host country's product production and technological appliance and disturb and despise national policy and planning by its powerful financial strength, promote coercively its values and interests by utilizing productive and marketing means, and change home country's cultural and life style. So a country must have a better understanding of the nature and connotation of a cross-national corporation in order to keep it in control and to seek advantages and avoid disadvantages.
More abstracts about the Cross-National Corporation: Its role in International Relations