MNC and State Interaction

By Nadia Ayuhito Resti (1701342536)

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.