The Growth of Transnational Corporations and Its Impact on Countries Around the World
A TNC is a company that operates in no less than two countries. An
example of this is Nokia a mobile phone company who are based in
Finland but also have manufacturing plants in Hungary and Bulgaria.
The also make some handsets in Mexico.
TNCs have increased rapidly over the last 30 years or so; this may be
due to a number of reasons. Governments in NIC (newly industrialized
countries) have tried to lure TNC to their countries. One way they
have done this is by keeping the land prices artificially low; this is
so the TNC can build factories and other building for less money. They
also have a relaxed attitude to environmental laws so the TNCs do not
have to pay out for expensive treatments for their waste so it
complies with strict laws like the ones they have in the US, UK and
Japan. Another thing that attract TNCs to NICs is the cheap labour
cost, weak unions and lack of minimum wage. This means that the TNC
can pay workers less, not worry about providing good working
conditions. All of these factors greatly benefit TNCs because they can
produce their products or components for a fraction of a price that
they would have to pay in their country of origin. Another thing that
has enabled companies to spread out over the globe is the fact that
global communications and travel has improved. Emails make it much
easier to communicate with colleagues in other countries and not have
to worry about time differences. Satellite links have allowed people
to have video meetings even if the people taking part are miles apart.
This makes it easier to organise p...
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... the other hand many people including employees are supporters of
TNCs because they have improved the life of many people in a lot of
countries who other wise would have had to scrape out an existence in
rice fields of in locally run factories with worse conditions and
poorer pay than they would receive in factories connected with TNCs.
In this essay I have tried to show the good and bad sides of TNC and
also reasons for why their number have increased so rapidly.
In conclusion I feel that TNCs are a mixed blessing to NICs. Its is
good for them socially and economically however from an environmental
view allowing TNC into a country is a big mistake unless the
government tighten laws on treatment of waste etc which I feel they
would not do because they would loose soe of the attraction they have
to TNCs if they did.
Sam Dillion wrote “What Corporate America Can’t Build: A Sentence” for an audience of college students, employees and corporate people. In his article, Sam points out that companies are spending a lot of money annually on remedial training. According to Sam, the writing problem appears in e-mails, reports and texts. He is informing his audience to brush up on writing skills before entering the corporate world, in order to avoid remedial training. Companies like to hire employees with excellent writing skills but many of employees and applicants fall short of that standard.
the way that it deals with the issues I have tried to consider in this
In this paper, I will be providing comments about chosen aspects, outlining and critically accessing the main themes and ideas of the article, voicing out my opinions on the article while presenting
A corporation was originally designed to allow for the forming of a group to get a single project done, after which it would be disbanded. At the end of the Civil War, the 14th amendment was passed in order to protect the rights of former slaves. At this point, corporate lawyers worked to define a corporation as a “person,” granting them the right to life, liberty and property. Ever since this distinction was made, corporations have become bigger and bigger, controlling many aspects of the economy and the lives of Americans. Corporations are not good for America because they outsource jobs, they lie and deceive, and they knowingly make and sell products that can harm people and animals, all in order to raise profits.
Learning about our past developments of economic, political and cultural background contributes to our understanding of how the world works today because history becomes a part of who we are and what we do. At the root, world history is connected events and memories that are bonded through globalization. Globalization is the process in which the world is connected through shared networks such as trade, rivalry, or even practiced culture. These shared networks established in the earlier days created a purpose to our traditions or habits. Learning about capitalism, I have understood that capitalism contributed to the world becoming globalized within our economic system.
...rnment and the Society”, I tried to develop and redevelop my ideas into sticking in one clear idea. Writing a thesis is also endless. It is difficult to choose a side upon a given subject especially if it’s a controversial one. By having the opportunity to look and read at each other’s essays, correcting grammatical errors, misuse of words, and suggestions on structure helped me see my essay in a different mindset. With the help of my peers and the Writing Center I was able to develop some confidence into my writing and overcome the endless revising.
Dicken believes that most TNCs are capitalist enterprises driven by profit. He argues that they are the primary movers and shapers of the global economy with the power to easily control or coordinate production networks across the world. In chapter four Dicken challenges a view that with time TNCs are going to abandon their country of origin, and take over the smaller weaker firms.
The negative externalities caused by MNCs are most visible in the damage that has been inflicted on the environment. The Exxon Valdez oil spill and the Oki Tedi toxic waste dumping are just two examples of MNCs causing serious harm to the environment, whether by accident or as a business strategy. Environmental damage can have devastating effects not just on the community an MNC has situated itself in but also potentially on the rest of the world as the effects of environmental degradation, much like globalization, spans borders and territories, as well.
1. Based on your knowledge and/or background research, identify four specific issues (in addition to the Example answer that contribute to the problem facing the TTC. Wherever possible, use evidence to support your identification of these issues (citing any sources you use). (8 marks)
“Exchange rates are the amount of one country’s currency needed to purchase one unit of another currency (Brealey 1999, p. 625)”. People wanting to exchange some money for their vacation trip will not be too much bothered with shifts if the exchange rates. However, for multinational companies, dealing with very large amounts of money in their transactions, the rise or fall of a currency can mean getting a surplus or a deficit on their balance sheets. What types of exchange rate risks do multinational companies face?
Multinational companies like Caltex have a moral obligation to improve the living conditions of the citizens who live and work in those countries. Their role cannot be limited to increasing shareholder value, while perpetuating and fortifying political regimes that persecute and discriminate a group, or groups of their citizenry. I liken this to reforestation, and the responsibility that governments and corporations have to our planet. A corporation cannot simply make a profit and deplete natural and human resources; it needs to give back to that country and its communities.
Globalization encourages worldwide business. Globalization is an efficient process by which all the nations of world will commonly try to set regular universal standards & regulations (both created & recommended) which will encourage business around different nations. Business around nations or elements crosswise over different fringes is called universal business.
4. Discuss the forces that are leading international firms to the globalization of their sourcing, production, and marketing.
Mira Wilkins defines a multinational enterprise (MNE) as a “firm that extends itself over borders to do business outside its headquarters country.” By 1870, a period denoted as industrial capitalism, MNCs started to evolve and the nature...
Firstly, multinational corporations are not something new in this 21st century. There are more and more international corporation as people try to boost the process of globalization. The development of these multinational corporations depends on the management of the owners. Transnational strategy is needed in order to operate such a big system of companies. Every nation in this system has to be managed thoroughly in order to help running the corporation, as well as to keep the system as one consistent body of business. Managers also find it important to look for opportunitie...