SO 206 Week 2 Discussion Work, Unemployment and Poverty

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Work, Unemployment and Poverty






Work, Unemployment and Poverty

Transnational corporation companies are profit based enterprises that engage in business related activities including the sales, distribution, extraction, manufacturing and research development outside and within their country of origin. Their key management decisions are usually made at the regional and global locations. The corporation of interest for this research is the Coca-Cola Company based in the United States. It is an American beverage corporation headquartered in Atlanta, Georgia. (Dunning, 2008)

The company has branches all over the world except in Cuba and North Korea. It manufactures retails and markets nonalcoholic beverage concentrates. Because of its worldwide distribution, it offers a lot of the employment in the area it serves. It employs all personnel involved in manufacturing, bottling, retailing and also marketing of their products. It therefore offers a whole range of employment opportunity.

Worldwide, the company is estimated to have offered employment to146.2 thousand people. Most of these are located outside the U.S in the subsidiary companies. The presence of multinational companies in foreign countries leads to job creation to several people in the other countries other than the U.S; this thus leads to industrialization of the countries and further development in the other nations. This culminates in the eradication of poverty in the said nations. (Dunning, 2008)

Creation of several jobs by the Trans national companies outside the states also has several adverse effects. For instance it has led to increased unemployment rates in the U.S. Most jobs are in the other locations and this leads to less employment of Americans. Also, those who have the chance of being employed are often transferred to countries located far away which lead to the separation of families and depopulation of America when these employees choose to relocate.

Labor issues related to the coca cola company include issues of forced labor in global supply chains. This was especially seen in the countries such as Brazil whereby the employees to employer contract is not well stipulated and thus the employee ends up being overworked or forced to do certain duties that are not well stipulated in their contract. (Hadari, 1973)

There have also been cases or child labor reported in the Coca-Cola Company. Thirdly, the company is known not to employ persons with disability which is an open discriminatory act which was especially rampant in India. These issues are currently being addressed to ensure the company thrives and improves its capacity of job employments in the right manner.

In conclusion, all transnational companies have the advantages and disadvantages both in their country of origin and in the subsidiaries. The challenges if well managed lead to the good thriving of the company and equal job opportunities which then lead to poverty and unemployment eradication. (Dunning, 2008)


The business behind the bottle. (n.d.). Retrieved April 14, 2016, from

Dunning J. 2008, “Multinational Enterprises and the Global Economy,” Addison-Wesley

Publishing company

Hadari Y. 1973, “The Structure of Private Multinational Enterprise” Michigan Law Review

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