Friday, April 5, 2013

Discuss whether Transnational corparations are good or bad for a nation state, its citizens and the economy as whole.

        To be able to discuss the above moves, it is necessary to get a line what is meant by transnational corporations (TNCs). TNCs atomic number 18 generally characterised as a company that buzz off modes of operation in two or more countries across the globe. Dicken (1992) gave a more definitive characterization,

TNCs tap the comparative advantage between countries, profiting from the differences in factor endowments, earnings rates, market conditions and the political and fiscal regimes.

On a more prefatory level, this means that TNCs tend to operate within countries where there are little restrictions on working conditions subsequently profits give the sack be maximised through low wages and not having to furnish the benefits that some countries see as basic. TNCs save a proneness to operate in countries that are flexible enough to be able to move their businesses elsewhere on a ball-shaped scale. Transnational corporations normally operate at a naughty level that the global economic and social effect that they backside allow upon a country is enormously substantial; a fact to bear in mind is that the 50 largest TNCs cave in a larger economic value than the gross national product (GDP) of the 130 poorest states. TNCs employ in excess of 6 million people worldwide and own 20% of external assets and have total foreign sales in excess of 2 trillion us dollars. These figure give a good understanding of how important TNCs are in todays troupe and the impact that TNCs have on globalisation. Good examples of TNCs are general motors, Ford, BP and Microsoft. These large companies also have a tendency to have more than one line of business, for example, Enron, formerly one of the worlds largest TNCs until it collapsed subsist year, markets electricity and natural gas, delivers energy and other physical commodities, and provides pecuniary and risk management services to...


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the answer is obvious to the question, of draw multinationals benifit there country of origin, that why they started in the first place.Maybe the question needs to focus on the global impacts of multinationals, and whether they might have too much influence over world politics.

I would have thought this essay deserved more than 50%! I think you addressed the issue about TNCs benefitting other countries kind of well. I would only suggest discussing why TNCs do manipulate so much power. Keeping in mind that it is the consumers that ascertain a companys success and economic viability, not the company itself, or political influence.

National companies become TNCs in order to deject costs and/or access new markets, as consumers pauperism cheaper goods or demand the goods and services offered by that business. TNCs only defecate the power they do because of consumers.

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