16.2I: Corporations and Corporate Power
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- Analyze the structure and function of corporations within society
- Despite being unlike natural persons, corporations are recognized by the law to have rights and responsibilities like natural persons. For example, corporations can exercise or be responsible for human rights. They can even be convicted of criminal offenses, such as fraud and manslaughter.
- Multinational corporations are important factors in the processes of globalization. A Transnational Corporation (TNC) differs from a traditional MNC in that it does not identify itself with one national home.
- The rapid rise of multinational corporations has been a topic of concern among intellectuals, activists, and the public who perceive them as threatening basic civil rights like privacy.
- Methods for attracting foreign investment have be criticized as a race to the bottom. They have also been described as a push, by corporations, for greater autonomy.
- Because of their size, multinationals can have a significant impact on government policy, primarily through the threat of market withdrawal.
- corporation: A group of individuals, created by law or under authority of law, having a continuous existence independent of the existences of its members, and powers and liabilities distinct from those of its members.
- globalization: A common term for processes of international integration arising from increasing human connectivity and interchange of worldviews, products, ideas, and other cultural phenomena. In particular, advances in transportation and telecommunications infrastructure, including the rise of the Internet, represent major driving factors in globalization and precipitate the further interdependence of economic and cultural activities.
- Multinational corporations: A multinational corporation (MNC) is a corporate enterprise that manages production or delivers services in more than one country.
Multinational and Transnational Corporations
Corporations and Governments