March 23, 2009

Globalisation & Diversity – week 5

Are there any points you disagree with on the affect of multinational corporations on local cultures?

It was difficult to disagree with what Deresky (n.d.) and Candir, Csabai, Egger, Fochler and Hedl (n.d.) describe as the affects multinational corporations (MNCs) have on local cultures as neither presentation specifically stated what those affects are. Rather, both presentations outlined differences between regions or countries: Regional Trading Blocs (Deresky, p. 5), specifically the European Union (pp.  6-7); and, cultural differences in power, uncertainty avoidance, individualism, masculinity and “long term vs short term orientation” (Candir et al. pp 5-12). From those differences, one can infer that MNCs should be mindful of a region’s cultural values related to their work ethic and structure to the point that “Structure should follow culture” (Candir et al. p. 24); while Deresky noted that there may be risks involved when MNCs deal with ‘less developed countries’ as well as more general political risks (p. 12; pp. 15-18).

Therefore, it could be viewed that any negative affects a MNC may have on the cultural values of the host country would be detrimental to the MNC in the long term. However, that may not stop a MNC acting as a parasite with no benefit to the host country which is ultimately harmed by the association (WordWeb, 2008).


Deresky, H. (n.d.) Assessing the Environment – Political, Economic, Legal, Technological. Retrieved March 23, 2008, from https://lms.sca.ecu.edu.au/units/CMM5110/kenno2009/helen.ppt

Candir, A., Csabai, C., Egger, A., Fochler, S., & Hedl, S. (n.d.) Culture and organization of the multinational firm. Retrieved March 23, 2008, from https://lms.sca.ecu.edu.au/units/CMM5110/kenno2009/fons.ppt

WordWeb. (2008). host. In WordNet database. Princeton University.

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