Global Economy and Environment As the global economy integrates, national or local companies will gradually transform into a multinational corporation (MNC). When this type of development occurs, the host countries are usually the ones who become the direct stakeholders. This is because when a multinational sets foot in a host country, there are economic, political, social and environmental impacts that arise from its corporate actions. In many cases, it is certainly possible that we could end up in a win-win situation if the host country and the multinational units work together. However there have been unfortunate examples where this has not happened. In general, international agreements have their advantages, as we can harmonize international standards. Therefore, environmental concern is one of the key issues that politicians and multinationals should give top priority to. This is because growth and development are strongly correlated with environmental degradation. Furthermore, it is fair to say that multinational corporations are more likely to have more harmful environmental impacts resulting from growth and development, compared to local companies. This is because multinationals may not be as competent as local companies in resource use and land management. This also refers to the concept of "the locals know their land better than anyone else". The tropical rainforest of Brazil is a good example of this. The Rindigeni or local populations have ag...