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

question 11

Essay

While the two extreme characterizations of the MNE-stakeholder relationship (exploitive 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 exploitive 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:

Movement Through

Generally refers to the progress or advancement of individuals within an organization or the flow of processes in operations.

Point Method

An evaluation system that assigns a numeric value to various factors of a job, such as skill level, effort, and responsibility, to determine pay scales and rank positions.

Designing

The process of creating a plan or convention for the construction of an object or a system, operationalizing visions into functional outputs.

Pitfalls

Hidden or not immediately obvious dangers or disadvantages, typically preventing success or effectiveness.