Photo AI
Assess whether legal controls are the most effective way of controlling the actions of multinational companies in countries, such as Brazil. - Edexcel - A-Level Business - Question 2 - 2022 - Paper 1
Question 2
Assess whether legal controls are the most effective way of controlling the actions of multinational companies in countries, such as Brazil.
Worked Solution & Example Answer:Assess whether legal controls are the most effective way of controlling the actions of multinational companies in countries, such as Brazil. - Edexcel - A-Level Business - Question 2 - 2022 - Paper 1
Step 1
Legal controls include the use of legislation and government policies
Answer
Legal controls play a crucial role in regulating the behavior of multinational companies (MNCs) in Brazil. These controls specifically include legislation aimed at managing advertising practices regarding unhealthy products. For instance, the Brazilian government imposed regulations on advertising sugary and fatty foods to protect public health, especially among children. This approach holds MNCs accountable for their marketing strategies and compels them to modify their product offerings to align with health standards.
Step 2
Multinationals can also be controlled using political influence and pressure groups
Answer
Beyond legal frameworks, the influence of pressure groups and civil society can shape the actions of MNCs. These groups advocate for consumer rights and public health and can impact MNCs through campaigns. For example, public backlash against unhealthy food advertising can lead to changes in marketing strategies. Social media, in particular, amplifies this influence as consumers can quickly mobilize and express their views, making it harder for MNCs to ignore public sentiment.
Step 3
Challenges of enforcement and alternative control methods
Answer
While legal controls are significant, their effectiveness heavily relies on enforcement. Brazil's bureaucratic challenges can impede the enforcement of these regulations. If laws are not properly enforced, MNCs may continue harmful practices. Furthermore, companies have the flexibility to adapt to various markets. This can dilute the impact of regulations, as a company may prioritize markets that have less stringent controls, thereby avoiding the intended effects of legal obligations.
Step 4
Societal control and consumer awareness
Answer
In addition to legal and political controls, consumer awareness and behavior also play vital roles. A well-informed public can exert substantial influence over MNCs by choosing not to engage with brands that do not align with their values. This form of societal control often manifests through boycotts or support for ethically responsible companies. However, the success of such initiatives often varies based on consumer access to information and cultural attitudes towards multinational corporations.