Question

How do multinational corporations contribute to the maintenance of international stratification?

Answer 1

Multinational corporations are companies that operate in many countries. They also help to maintain the global dominance of the Industrialized Nations simply by doing business perpetuating international stratification.

MNC may have several interests like managing mining operations in several countries, manufacturing goods in others, and market its products around the globe. The primary beneficiaries are always the Industrialized nations, especially the one in which the multinational corporation has its world headquarters.

In their pursuit of profits, the multinational corporations need cooperative power elites in the least industrialized nations. The MNC always require favorable business climate in form of low taxes and cheap labor to maximize their profit and control the economy of the country where they are operating.

They allow the elites especially dictators to purchase high-tech weapons to their positions of dominance. The result is a political stability that keeps alive the profitable partnership between the multinational corporations and the ruling groups in least industrialized nations.