Transnational Corporation take advantage on national differences in production factor costs such as natural resources, labour, and state incentives where it has the ability to switch its resources and operations between locations at a global scale.
This is called a horizontal corporate structure. Their impact on the rest of the world including physical environment, social relations, employment, labour and the economy.
It is well known that TNCs are a driving force behind Globalisation and Industrialisation, which contribute to Climate Change, pollution and other environmental damage. Market failure is when those who are producing or consuming goods or services do not have to bear the full costs of their actions, such as the cost of pollution.
The cost of cleaning up the pollution and waste that they leave behind is only a miniscule fraction of their budget, but would pay back impressive dividends in reputation and would help heal the environment.
Nevertheless, very few large TNCs do this and so it is the responsibility of the nation and the international community to punish these TNCs. Many global Transnational corporations essay, while not the largest TNCs, are making a genuine effort to decrease their footprint on the environment.
The importance of globalization and transnational corporations are increasingly becoming popular (Hedlund, ), one of the main reasons for that is the fact that transnational corporations are one of the major actors in the global economy and the leading figures in the economic growth. Role of Transnational Corporations (TNCs) Introduction. A transnational corporation (TNC) or multinational corporation (MNC) is a firm which has the power to co-ordinate and control stages in operations of production chain in more than one country, even if it does not own them. Place an essay order Place a dissertation order Place a marking order Order a personal statement. Print Reference This. The Impact Of Transnational Corporation Economics Essay Introduction p. 1 The impact of transnational corporation to host countries p. 4.
They are creating their own environmental reports, cleaning up waste and pollution and following international and national law as regards pollution.
Nevertheless, this number is not high enough and TNCs as a whole are having a major impact on the environment. Economic implications Many major TNCs like Nike subcontract smaller companies in developing, third world or second world countries like Pakistan, where they use cheap and sometimes child labour to create their product.
The governments, even though child labour is illegal, this problem is ignored because it is just another facet of the result of poverty. TNCs like Nike that are sometimes called evil are helping third world countries out of the dumps and slums, but ignore the social problems that are created and heightened along the way.
More often than not, those children who make the soccer balls and leather shoes that we use in Australia are the main source of income for the family, and they have little choice but to earn that two dollars a day to feed their family.
Changing Countries Many major TNCs have moved their manufacturing facilities offshore to cheap, low wage countries. This has resulted in unemployment and social upheaval, for example recent riots in France and in the United Kingdom, not to mention the rust belt in the US which has gone offshore and left workers stranded with little or no income and dependant on the state.
This is very good for the balance sheets of corporations, but this shifts power away from the governments and makes the global economy far less stable. Individual country economies are also affected negatively. Having said this, there are some advantages. For example, an oil company goes to an undeveloped place, they have the resources and the capacity to develop the economy of the host country in such a way that is not possible by the host country alone.
Exploitation of low environmental standards — In underdeveloped countries, the governments are often weak and the environment is not their priority, and often the governments are willing to ignore the environmental woes of the TNCs because of their superior economic benefits Capital — They have capital available for investments which an undeveloped country may not be able to tap.
Increase in corruption — By introducing a new economic sector into a minor developing country, major work needs to be done and there are bound to be problems; in these types of countries most if not all problems with planning permission and environmental problems can be either ignored or sold with a large enough bribe.
Reducing costs of products produced in the host country — When multinationals move their manufacturing facilities offshore for a certain product, the price of that product in the host country will go down because it is being produced locally.Are transnational corporations a benign or malign force in the contemporary world?
Today we live in a world no longer contained by the nation-state; business, tourism, information, diseases, pollution, ideas are all constantly flooding across national borders. Impact of Transnational Corporations Essay.
A multinational corporation (TNC) is a house that has the power to organize and command operations in more than one state. even if it does non have them. Transnational Corporations – the Good, Bad and the Ugly Formatted Essay.
B. Pages:6 Words This is just a sample. To get a unique essay. We will write a custom essay sample on Transnational Corporations – the Good, Bad and the Ugly Formatted specifically for you for only $ $/page. Essay on Transnational Corporation The term transnational corporation (TNC) is often used interchangeably with that of multinational corporation (MNC) or multinational enterprise (MNE) to mean a firm that owns or controls income-generating assets in more than one country.
Nov 20, · Nowadays, transnational corporations are not only understood as a platform on which the economy of developed economy is actually based, but also as a major multinational group, including many overseas branches of production, research, supply and 3/5(3). What is neoliberalism and how did it emerge or come about?
This part of the global issues web site looks at this question.