Discuss the Role and Impact of Tncs in the Global Economy...

Discuss the role and impacts of TNC’s in the global economy. (40 marks) Transnational Corporations (TNC’s) play a large role in the development of the global economy, through the sharing of research, trade and technological advances between the different countries. They also play a big part in increasing the interconnection in the world’s economic, cultural and political systems, otherwise known as globalisation. Nevertheless there are both positive and negative impacts that TNC’s bring to the global economy, socially, economically, politically and culturally. The world has seen a huge rise in the number of Transnational Corporations. Since the 1970s the number of TNCs has risen from 7,000 to over 60,000. To begin with, around 95%†¦show more content†¦The development gap is also widened as workers in the developing world are paid less to make the same products or provide the same service. For example, BT, a company that has operations in around 170 countries, has shifted their customer call service from India to the UK. The exploitation of cheap labour has had both positive and negative impacts. 5,000 people that BT has employed in India have not only been supplied with a job but also with invaluable skills. The money that they earn would contribute to the family income, boosting the standard of living for both the employees and the employees’ family. The TNC is also puts money into the Indian economy, contributing to economic growth and boosting the countries GDP. Many countries (including India and Brazil) which were classified as developing countries, have become newly industrialised countries (NICs). Nevertheless exploitation can occur as wages are set at very low levels and therefore the wealth has been shifted from the 5,000 people that would have been employed in the UK to the shareholders of the company through additional profit made from the competitively low wages paid to the workers. There is also the question that many pose; are TNCs corrupting local cultures around the world? Montenegro is an example of a country that has banned TNCs such as McDonalds to push back against globalization. They believed that big global companies were dominating theirShow MoreRelatedNics Have Been and Continue to Be the Driving Force of Globalisation. Discuss.1487 Words   |  6 PagesNICs have been and continue to be the driving force of globalisation. Discuss. An NIC stands for a Newly Industrialised Country. It is a term used to describe a country that has moved away from an agriculture-based economy and into a more industrialised, urban economy. These countries have a high growth rate. Current NICs include China, India, Brazil, Malaysia, Mexico, South Africa, Philippines, Thailand and Turkey. The average growth rate between these countries is approximately 7.64% comparedRead MoreStates are the Most Powerful Global Actor1553 Words   |  7 Pagespowerful global actor.’ Discuss. Although global actors can sometimes have considerable power over states, the extent of this power ultimately depends on the relative power and influence of the state in question. Large developed states, such as the US, are extremely powerful compared to most other global actors and are not often influenced by their actions. However, small and undeveloped states are not always completely powerless. To determine whether states are indeed the most powerful global actorsRead MoreCurrent System Of Trade And The Globalization Of The Production Of Food2137 Words   |  9 Pagesthrough which we can see the historical progression of the globalization of food trade, and furthermore, as powerful players, we can see where the influence and discourse behind the drive for international trade comes from. In the second part I will discuss who the drivers of these institutions are, and how this ultimately affects the discourse and policies of free trade. International Trade and the prominence of Transnational Corporations have been completely revolutionised since the end of World WarRead MoreEnvironment Protection Is A Country s Fundamental Policy2337 Words   |  10 PagesAbstract Environment protection is a country’s fundamental policy. Globalization has encouraged TNCs to move from their mother countries to hosr countries in pursuit of more profit. This has caused serious pollution problems. To maintain their benefits, TNCs are take strategies and using tactics to influence the developing countries’ environmental policy making. They always succeed just because of their own political power behind their financial strength. This paper explores how and why transnationalRead MoreAnglo American Corporate Social Responsibility1501 Words   |  7 Pagesand the nature of the economic and non-economic contribution it intends to make to its shareholders, employees, customers and communities†. Also, Drucker (1993) more straightforward to say â€Å"corporate means responsibility†. 3. Development Before discuss weather the view of CSR be impacted, it is necessary to review the development of concepts of CSR. Bowen (1950) defined social responsibility no as the business’ obligation to make decisions and these actions are beneficial for the value of our societyRead MoreThe News Corporation - Strategic Analysis7537 Words   |  31 Pagesrecent developments 2 1.2 Recent developments 3 1.3 Historical analysis 5 2. What are the global and corporate strategies ensuring a successful development of the News Corporation? 6 2.1 Entry mode 6 2.2 Global strategies 6 2.3 Corporate Level Strategy 7 2.4 Diversification 7 2.5 Synergy 8 2.6 Mix of Business units (BCG matrix) 8 2.7 Role of Rupert Murdoch 10 3. What is the role of stakeholders and corporate governance within the News Corporation? 11 3.1 Governance mechanismRead MoreTransnational Corporation And What Impacts Do They Have On Society?1163 Words   |  5 Pages What is a Transnational Corporation and what impacts do they have on society? Before we can discuss the impacts these types of corporations have on society, we must first have a basic knowledge of exactly what a Transnational Corporation is and how they are formed. Then we can begin to comprehend how these corporations’ impact things such as international trade and the effects they have on cultures throughout the world. Let’s begin by defining a Transnational Corporations. Most of individualsRead MoreMultinational Corporations ( Mncs ) Role2182 Words   |  9 Pagesprimary purpose of this essay is to evaluate the Multinational Corporations (MNCs) role in discharging their ethical and philanthropy beyond the statutory requirements and its implications on the reporting system. The globalisation and liberalisation and the technology are the key factors driving the MNCs to go beyond the statutory requirements (Rondinelli, 2002). He argued that the Trans-National Corporations (TNCs) more powerful and equal with the government strength and they can do the philanthropyRead MoreTransnational Strategy3449 Words   |  14 PagesImplementing Transnational Strategy Name Course Instructor Date Introduction The global environment over the past decade has changed dramatically (Friedman, 2005), with increasing globalization ushering in an era of unprecedented competition, particularly for Western countries in light of the emerging Asian Giants. This has been further compounded by the 2008 financial crisis and the resulting economic crisis (Hill Jones, 2010), which have ledRead MoreThe Role of Non-state Actors in International Relations2224 Words   |  9 PagesThe Role of Non-state Actors in International Relations Introduction International relations (IR) is like a stage where actors are needed to put on a show. Actors are any person or entity which plays a role that is attributable in international relations. There are two kind of actors in the world of International Relations which are states and non-state actors. States are territories run by a government and have a permanent population. Although states are the most important actors in IR, they are