Advantages Of Multi Centric Economic Model

Multi-Centric Economic Model:
Strategies, Outcomes, Solutions

Introduction
In current globalization era, we can see that everyone is actively participating in the competition arena of economy, science, technology, politics, etc. For example, in the arena field of economy today, it is not only government or individuals that become actors and have roles in the market, but other organizations are also rising to be one of the crucial actors in the economy sector. As the varied organizations emerge widely and dominate almost every country, Multi-Centric Organizational (MCO) Model sees that it is no longer market that regulates itself; usually called as ‘self-regulating market’, but rather multi organizations that now become basic actors in economy.

He argued that it would be impossible to have equitable distribution of the growing income from the market-industrial society, because basically those who own a scarce and limited resource would reap unequal benefits while others would suffer.(Raymond:2008) Ricardo brought in the role of power as a significant arbiter of outcomes in the economy study, which then developed and was combined with institutionalists’ perspective that saw organizational politics as the realization of power. Thereafter, the combination resulted to the model of Multi-Centric Organizational (MCO) which can be studied from four core

As every organization has a different objective with the others, each of them needs to have strategies to face a clashing interest. They need power in order to win their chances over their goals, and this power is represented in the form of money. MCO believes that money represents the organizations’ power because having access to money means having access to capital and means greater control over wealth allocation.(Raymond:2008) For example, many third-world countries’ economy conditions and policies are dictated by International Monetary Fund (IMF) because IMF is basically having the funds needed by those worlds, while European countries; who are the funders, seem to have easy access on affecting the IMF’s policies. It proves that power is important to exercise the strategies of an organization to control the others.
Third, the driving objectives of the organizations are wealth and power. The organizations use power in order to get the wealth they pursue. The wealth in this matter consists of income and capital; could be in the both physical and financial form, goods, services, research, technology, etc., which then will contribute to level up their existing power. So, the wealth and the power is related and determinant to each