Question

How did the modern world corporate culture come to be coined as ‘new world imperialism’ or neo imperialism. How did MNCs manage?

Answer 1

Instructions:
The question is related to the exploitative attitude of the MNCs that made them prey on weaker nations. So keep the focus on how they fought for control over resources, exploitative practices disrupting local economies and how finally the dependence on MNCs made countries bend rules for them.

Solution:
MNCs first of all competed with each other for the control of resources in host countries especially in the third world countries where economies were weak and dependent on MNCs for job creation and economic development.
Following are some of the ways in which MNCs promote self growth:

• MNCs promoted the concept of consumerism in order to expand their markets in the third world countries, right up till the villages of the poorer countries.
• These companies exerted a lot of pressure on poorer host countries leading to collapse of economies of several such vulnerable countries across the globe.
• Traditional crafts and cottage industries suffered as did many traditional cultural ethics. Since the MNCs were always promoting the ideas that were suited to their growth in the region.
• This form of control over another countries assets, resources and wealth without formally calling them a colony came to be known as Neo Imperialism or new imperialism.
• MNCs also bred a culture of exploitation and corruption.