The Social Impact of Multinational Corporations’ Profit-Driven Strategies in Competitive Versus Monopolistic Markets
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The Social Impact of Multinational Corporations’ Profit-Driven Strategies in Competitive Versus Monopolistic Markets

Yuanjun Jiang Jack 1*
1 Ulink College of Shanghai
*Corresponding author: Jackjiangyuanjun@outlook.com
Published on 5 November 2025
Journal Cover
AEMPS Vol.236
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-80590-505-9
ISBN (Online): 978-1-80590-506-6
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Abstract

Multinational corporations (MNCs) have significant social impacts through their profit-driven strategies, which vary based on market structure. In competitive markets, MNCs promote innovation and consumer welfare, while in monopolistic environments, they often harm societal well-being by limiting choice and efficiency. This study examines the social impact of MNCs’ profit-driven strategies, distinguishing between outcomes in competitive versus monopolistic markets. It explores how MNCs generate and spend money, and evaluates whether their activities contribute positively or negatively to society under different market conditions. The paper adopts a qualitative case analysis approach, drawing on examples from industries such as retail opticians, artificial intelligence, and technology. The findings indicate that in competitive markets, MNCs generally enhance societal welfare through innovation and efficiency. However, in monopolistic settings, their profit-seeking behavior often leads to consumer harm, reduced competition, and inefficient resource allocation. While philanthropic efforts by MNCs are noted, they are insufficient to offset structural harms. The study concludes that robust regulatory frameworks are essential to align corporate profit motives with broader social welfare.

Keywords:

multinational corporations, competitive markets, monopolistic practices, anti-competitive behavior, social impact

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Jack,Y.J. (2025). The Social Impact of Multinational Corporations’ Profit-Driven Strategies in Competitive Versus Monopolistic Markets. Advances in Economics, Management and Political Sciences,236,16-21.

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[16]. Dworkin, R. (2006). Is democracy possible here? Principles for a new political debate. Princeton University Press.

[17]. Lazarus, J., McKay, A., & Herbel, L. (2016). Who walks through the revolving door? Examining the lobbying activity of former members of Congress. Interest Groups & Advocacy, 5, 82-100.

[18]. Chomsky, N. (2021). Noam Chomsky: To Retain Power, Democrats Must Stop Abandoning the Working Class. Noam Chomsky Interviewed by C.J. Polychroniou. Truthout. Available from: https: //chomsky.info/20210708/

[19]. Savada, A. M., & Shaw, W. (Eds.). (1997). South Korea: A country study. Diane Publishing.

[20]. Albert, E. (2018). South Korea’s Chaebol Challenge. Council on Foreign Relations. Available from: https: //www.cfr.org/backgrounder/south-koreas-chaebol-challenge

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[22]. Bianchi, T. (2024): Google: revenue distribution 2017-2023, by segment. Available from: https: // www.statista.com/statistics/1093781/distribution-of-googles-revenues-by-segment/

[23]. Dixon, S. J. (2024): Meta: annual revenue 2009-2023, by segment. Available from: https: // www.statista.com/statistics/267031/facebooks-annual-revenue-by-segment/

References

[1]. Kurz, H. D. (2016). Adam Smith on markets, competition and violations of natural liberty. Cambridge Journal of Economics, 40(2), 615-638.

[2]. Smith, A. (1976). An Inquiry into the Nature and Causes of the Wealth of Nations, first pub- lished in 1776, in Campbell, R. H. and Skinner, A.S. (eds.), The Glasgow Edition of the Works and Correspondence of Adam Smith, two vols, Oxford, Oxford University.

[3]. Davies, S., Coles, H., Olczak, M., Pike, C., & Wilson, C. (2004). The Benefits of Competition: Some Illustrative UK Case Studies. Department of Trade and Industry Economics Paper, (9).

[4]. OECD (2024), "Artificial intelligence, data and competition", OECD Artificial Intelligence Papers, No. 18, OECD Publishing, Paris, https: //doi.org/10.1787/e7e88884-en.

[5]. Armstrong, M., & Porter, R. H. (Eds.). (2007). Handbook of industrial organization (Vol. 3). Elsevier.

[6]. Ko, A. (2022): Amazon seller fees you need to know about and tips for managing them. Available from: https: //www.wix.com/blog/amazon-seller-fees/

[7]. Varoufakis (2023). Interview in Times Radio: Capitalism is over and 'social democracy is finished’. Available from: https: //www.youtube.com/watch?v=1A4dMK7S6KE

[8]. McCabe and Grant (2023): U.S. Accuses Google of Abusing Monopoly in Ad Technology. Available from: https: //www.nytimes.com/2023/01/24/technology/google-ads-lawsuit.html

[9]. Department of Justice (2023). Justice Department Sues Google for Monopolizing Digital Advertising Technology. Available from: https: //www.justice.gov/opa/pr/justice-departmentsues-google-monopolizing-digital-advertising-technologies

[10]. Boldrin, M., & Levine, D. K. (2013). The case against patents. Journal of Economic Perspectives, 27(1), 3-22.

[11]. Lerner, J. (2002). 150 years of patent protection. American Economic Review, 92(2), 221-225.

[12]. Rice, J. M. (2015). The defensive patent playbook. Berkeley Tech. LJ, 30, 725.

[13]. Stiglitz, J. E. (2012). The price of inequality: How today's divided society endangers our future. WW Norton & Company.

[14]. Baker, C. E. (1981). Realizing Self-Realization: Corporate Political Expenditures and Redish's The Value of Free Speech. U. Pa. L. Rev., 130, 646.

[15]. Richter, B. K., Samphantharak, K., & Timmons, J. F. (2009). Lobbying and taxes. American Journal of Political Science, 53(4), 893-909.

[16]. Dworkin, R. (2006). Is democracy possible here? Principles for a new political debate. Princeton University Press.

[17]. Lazarus, J., McKay, A., & Herbel, L. (2016). Who walks through the revolving door? Examining the lobbying activity of former members of Congress. Interest Groups & Advocacy, 5, 82-100.

[18]. Chomsky, N. (2021). Noam Chomsky: To Retain Power, Democrats Must Stop Abandoning the Working Class. Noam Chomsky Interviewed by C.J. Polychroniou. Truthout. Available from: https: //chomsky.info/20210708/

[19]. Savada, A. M., & Shaw, W. (Eds.). (1997). South Korea: A country study. Diane Publishing.

[20]. Albert, E. (2018). South Korea’s Chaebol Challenge. Council on Foreign Relations. Available from: https: //www.cfr.org/backgrounder/south-koreas-chaebol-challenge

[21]. Tan, J.S. (2023). It’s All Bullshit: Performing Productivity at Google. Available from: https: // thebaffler.com/latest/its-all-bullshit-tan

[22]. Bianchi, T. (2024): Google: revenue distribution 2017-2023, by segment. Available from: https: // www.statista.com/statistics/1093781/distribution-of-googles-revenues-by-segment/

[23]. Dixon, S. J. (2024): Meta: annual revenue 2009-2023, by segment. Available from: https: // www.statista.com/statistics/267031/facebooks-annual-revenue-by-segment/

Cite this article

Jack,Y.J. (2025). The Social Impact of Multinational Corporations’ Profit-Driven Strategies in Competitive Versus Monopolistic Markets. Advances in Economics, Management and Political Sciences,236,16-21.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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Volume title: Proceedings of ICFTBA 2025 Symposium: Financial Framework's Role in Economics and Management of Human-Centered Development

ISBN: 978-1-80590-505-9(Print) / 978-1-80590-506-6(Online)
Editor: Lukáš Vartiak, Habil. Florian Marcel Nuţă
Conference website: https://2025.icftba.org/Galati.html
Conference date: 17 October 2025
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.236
ISSN: 2754-1169(Print) / 2754-1177(Online)

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