While the Two Extreme Characterizations of the MNE-Stakeholder Relationship (Exploitative

question 9

Essay

While the two extreme characterizations of the MNE-stakeholder relationship (exploitative and transformative)tend to garner the most media attention,it is the more moderate perspectives of the MNE-stakeholder relationship (transactional and responsive)that tend to predominate in the context of FDI in emerging markets.However,given that these two perspectives represent the middle ground along the spectrum between exploitative and transformative,the distinctions between transactional and responsive characterizations of the MNE-stakeholder relationship in emerging markets are occasionally blurred.Clarify the differences between the transactional and responsive perspectives by comparing and contrasting the two characterizations,using examples that you think illustrate your position.

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Definitions:

Expansionary Monetary Policy

A monetary policy approach used by central banks to increase the money supply and lower interest rates, aiming to stimulate economic growth.

Classical Economics

A school of thought in economics that emphasizes the importance of free markets, competition, and the self-regulating nature of economies.

Adam Smith

A Scottish economist, philosopher, and author who is considered the father of modern economics, known for his theories on free markets.

John Maynard Keynes

A British economist whose theories on the effects of government spending and total demand influenced modern macroeconomics and government fiscal policy.