As we know, the economy and politics
are two things that can’t be separated because they are consistent and mutually
influencing. When we talk about international politics then the economy can’t
be separated from MNC and country elements, namely MNC working in the economic
aspects and the state working in political aspects.
In the
context of international relations MNC regarded as a non -state actor because
MNC is driving the economy in a country. MNC is an organization working in the
field of very large businesses in the form of production, investment, and
employment in the whole world. That is a multinational company can tell if the
company has branches or investments in other countries to expand their business.
In the process of investing in other countries, the role of the State is very
influential. A company can’t make investment in other countries without the
consent of the State of origin and country of destination. The country is also
used as a benchmark for the MNC as a company will make an investment in a
country with a chaotic political situation. Relationships between MNC and
highly dynamic state when both are mutually beneficial , so MNC move the
economy in the country of origin , country of origin also aids in stabilizing
the economy , the State also profitable investment destination as it can suck
the unemployment to have a job.
For
example the United States as the home country has a fast-food restaurant that
McD as the mother company because it is the center of all the branches in the
world. In fact, McD is already spread all over the world such as Indonesia,
China, India, Singapore, and other countries. Countries which are container
investment by McD called as the host country. Their relationship is established
when the mother company invested by purchasing an existing company or companies
to build their own from the beginning or working with companies in the
destination country.
The
conclusion that can be drawn from this discussion is the state and MNCs can ‘t be
separated when they want to move the trading system and international business
because the two are related. Because, basically, economic and political it was
in line when talking about economic MNC and country talk about politics.
