OpinionOthers

Multinational companies

By Yousuf Awadh Al-Azmi

“If you’re changing the world, you’re working on important things.” – Larry Page

There are gigantic capitalist entities representing a multinational and transcontinental private sector. They are companies that spread around the world due to their efficiency in their fields, and they have capitals that equal countries’ budgets if not more – rather there are companies that became a symbol of economic liberalism, which is one of the political and economic doctrines. What are known as multinational transcontinental companies are playing roles that are considered soft power in certain approaches, be they economic, social or cultural.

In the energy sectors, we see an influential global presence of companies whose budgets are equal to that of countries. In the food sector, there many transcontinental trademarks. Major multinational companies look for certain facilities, without which it will be difficult to enter the local market of a country. Among the most important facilities are political stability and security, the legal and organizational environment (legislations), size of the local market, total economy stability, exchange rates, material infrastructure, competitive and low tax rates, possibility of getting land and real estate assets, presence of attractive financial channels, skilled low-cost labor and other things companies look for.

There are those who are apprehensive towards these types of companies, due to their influence over several things, such as their control of the market in which they operate due to the huge facilities they possess. Also, there are those who believe that the entrance of such companies cannot be without a certain political cover, and in this particular case, it is mostly alluded to bribing influential politicians or a form of administrative and financial corruption, which allows these companies to control the fields they operate in the market. Of course, not all that is said is true, and there must be exceptions. There must be honest parties who lead countries’ economies.

There are those who link the spread of gigantic companies with globalization, and that the world has become a small village. There are those who confirm the world has even become a small room. Of course, there is no doubt about the truth and reality of this linkage, yet what are the effects of the penetration of these large capitalist companies with huge resources on the local trade? Will it be motivational and boost the interest of all, or will they take everything, or sway the market according to their moves?

The talk is too much about this, and dealing with these companies is supposed to be professional considering the fluctuations of the world economy and requirements of the local one, by passing legislations that strike a balance between supply and demand, and decide on the investor with what agrees with the country’s laws and free competition. We must not be afraid of the investor in a way that is not constructive and does not present any benefit; rather we should deal in a way that preserves the right of all, and the first of these rights is a clean judiciary that deals with people equally, with flexible legislations, and a financial and administrative infrastructure that accepts all.

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