The Causes And Impacts Of Transnational Corporations

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%

Governments might change or new political parties might be elected, but the concern of the multinational corporation is the continuity of the set of rules or codes of behavior and the continuation of the rule of law—regardless of which government is in power.

Multinational Corporations (or MNC’s) are businesses with operations placed in various countries other than the home country where all functions are managed. Traditionally, it is up to the federal government to prevent these entities from abusing their power and violating International Law by implementing regulations. However, because of their transnational status, MNC’s are separate from the government, the state, and society; giving them the ability to act outside of public standards. This has caused problems in the international realm as it frees up opportunity for corporations to abuse their power due to a serious

Analysts agree that TNCs have altered the international relations principles that were once dominated by nation-state relations (Kline, 2005).Transnational Corporations have in many ways exploited the weaknesses in the territorially guarded national laws. In many developing countries, organizations affiliated to external control have challenged and in some instances threatened government sovereignty. Economically stable countries such as the United States of America, have attempted to extend their influence to other countries of the world through TNC. This situation is what led to governments endorsing the non-interference policy in national political affairs (United Nations, 2003). Interesting to note is the role that non-governmental organizations played in this debate. Nongovernmental organizations have been known to not only exert political pressure on governments with little democratic space, but also collaborate with TNCs in this quest. (Heinrich, 2001). For example, many NGOs sort the active involvement of TNC in removal of the apartheid regime in South Africa. This in return, has created tension between these governments and the NGOs with the NGOs calling for the increased political involvement of the TNCs.

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.

Transnational corporations are companies who’s business activities have an influence on economic, social, and environmental outcomes in more than one country. There are some similarities in principles, expectations, and motives between countries regarding these matters, however there are also some differences too. This makes it vital for companies to consider these issues, in order to be socially responsible on an international scale as well as a national scale. (Boddy 2012) states that corporate social responsibility “refers to the awareness, acceptance and management of the wider responsibilities of organisations”. Producers and suppliers to transnational corporations are in some cases regarded as a wider responsibility of transnational corporations, as it is the dealings between the two parties that lights up a variety of topics to review. The aim of this piece of work is to talk about the main factors that transnational corporations need to consider when dealing with producers and suppliers, and their respective communities, in order to be socially responsible, by reviewing previous literature of accredited scholars and researchers. This involves the fairness of how transnational corporations deal with producers and suppliers, and also, the thoughts towards exploitation of labour by suppliers in poor countries.

The issue of the impacts transnational corporations have on less developed countries has been a controversial and much disputed subject within the field of economics and development studies. Researchers using various models such as the Rostow Development model, Harrod Domar model and the Neoclassical Theory Model, have studied these impacts and have tried to come to a conclusion to this issue. Researchers have also conducted many case studies in order to investigate in depth factors contributing to impacts and whether there are differences due to external factors. The issue has grown in importance over the last decade and this paper attempts to discover whether the impacts are beneficial enough in order to uphold transnational corporation

The world is entering a period where corporations are gaining more power in society. Multinational business corporations will ultimately become more powerful than the government. Corporations influence decisions made by the government by providing campaign funding and lobbying. Businesses strive to satisfy their consumers’ wants and needs far well than the government strives to satisfy the wants of its population. Financial crisis and recession can begin in areas where jobs provided by corporations are lost, granting businesses power over the job market and gross domestic product. This essay will address how corporations are

Trans-National Corporations refer to an economic entity or a group of economic entities operating in two or more countries, regardless of legal framework, the country of origin, and country or countries of activities, where the activities can be considered individually or collectively. Several Trans-National Companies have engaged in expensive campaigns and programmes to positively impact the world. However, the actual motive behind such events is ambiguous. With capitalism and globalisation, large Corporations interested in international development and trade are able to allocate resources to get favourable outcomes for the interests. Hence, these corporations become the most influential source for political and economic dominance, enabling them to be greatly unaccountable for social and economic problems. Therefore, I argue that Trans-National Corporations bring more harm than help to the world. The three primary areas of discussion are the ethics, health and labour, where consumers, children, workers, governments, and organisations are impacted by

Globalization is the process by which businesses or other organizations develop international influence or start operating on an international scale (Capital, 2013). Globalization has increased the production of goods and services, for instance the biggest companies are no longer national firms, but transnational corporations with subsidiaries in many countries. Transnational Corporations (TNCs) are companies with branches in many different countries worldwide. They have their headquarters in their country of origin, and many manufacture their products in LEDCs. Examples of TNCs include Nike, Wal-Mart and Microsoft. They often locate their factories in countries that are

The purpose of this report is to explain why the impacts of transnational corporations on developing countries are important to understand. Transnational corporations are large companies that have a head office in one country and subsidiary offices in other countries. They affect all countries; however, they affect developing countries on a much larger and damaging level. This is because developing countries are poorer, many people have a lower standard of living, and the resources available and the amount to hire an employee is significantly lower that one of a developed country. The two negative impacts caused by transnational corporations that will be discussed in this report are sweatshops and life expectancy. These impacts are important to understand because they educate us on how the world of trade is influenced by sweatshops, and how sweatshops effect an individual’s life.

This essay’s thesis is that there is currently a lack legal apparatuses that can be used to hold transnational corporations liable for human rights violations; specifically violation of labour rights. This paper seeks to discuss various legal instruments that are applicable to transnational corporations and human rights violations. It will also provide theoretical framework for understanding the nature of human rights and legal framework of labour laws. This essay will address the following questions: What is the legal status of transnational corporations? How can current legal apparatuses be used to hold transnational corporations accountable for human rights violations? This essay will also consider the case of human right violations by Nike Corporation in order to show that external pressures can produce development and accountability.

This chapter argues that besides democratic institutions in a country, there are other factors that that multinational corporations take into consideration before deciding whether to invest in a country or not. The author refers to this other factor(s) as veto players which he describes as either being individual or collective actors and whose approval warrants policy change in a state.

The mounting standing of multinational corporations (MNCs) in today’s global economy has held some interest from international organizations, national government agencies and local citizens (Yang & Huang 2011: 3). MNCs have risen to prominence through mergers, procurement and setting up new enterprises, and they have operated businesses throughout the world (Yang & Huang 2011: 3). They mobilize resources, develop vertical and horizontal production networks and penetrate all kinds of markets across borders (Yang & Huang 2011: 3). These acts have changed the operations of a national economy as well as the relationships among them (Yang & Huang 2011: 3). In this essay, I will seek to evaluate the factors that empower and constrain MNCs, and thus forge and communicate the understanding of whether their structural power has been on the incline or on the decline.

The end of the 1980s experienced a visible change experienced in the literature concerning MNE functions and nature of business (Segal-Horn and Faulkner, 2010). Before 1980s, the main research in MNE field was about analyzing relation between affiliates and headquarters of the firm, and also decisions concerning making investment in foreign country, which was also experienced in Dunning’s work. After that, the focus was shifted to operations concerning coordination in management of a network of affiliates of an MNE and analysis of the competitive advantages received by these affiliates from the respective economies. Therefore, the last 20 years have experienced a very beneficial theoretical work in the field of international business and