Criticism of multinationals

Main articles: Anti-globalization movement and Anti-corporate activism

Anti-corporate advocates criticize multinational corporations for entering countries that have low human rights or environmental standards.^[31] In the world economy facilitated by multinational corporations, capital will increasingly be able to play workers, communities, and nations off against one another as they demand tax, regulation and wage concessions while threatening to move. In other words, increased mobility of multinational corporations benefit capital while workers and communities lose. Some negative outcomes generated by multinational corporations include increased inequality, unemployment, and wage stagnation.^[32]
The aggressive use of tax avoidance schemes allows multinational corporations to gain competitive advantages over small and medium-sized enterprises.^[33] Organizations such as the Tax Justice Network criticize governments for allowing multinational organizations to escape tax since less money can be spent for public services.^[34]
The 5 Cons of Multinational Corporations
1. The Market Dominance of Multinational Corporations - The market dominance of multinational corporations makes it hard for the local small firms to succeed and thrive. For instance, there are arguments stating that the larger supermarkets squeeze out a notable margin of the local corner stores that lead to lesser diversity.
2. Consumer’s Expenses - Companies are usually interested at the consumer’s expense. The multinational companies commonly have the power of monopoly that gives them the chance of making excess profit.
3. Pushing Local Firms Out Of Business - In the developing economies, these giant multinationals use the economies of scale for pushing the local firms out of their businesses.
4. Criticized For Using "Slave Labor" - Multinational corporations are being criticized for using the so-called slave labor wherein the workers are paid with very small wages.
5. Environment Threat - For the sake of profit, these global companies commonly contribute to pollution as well as make use of the non-renewable resources that can be a threat to the environment.