The Impacts ofTransnational Corporations on Less Developed Countries

2517 Words 11 Pages
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 …show more content…
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 activities in less developed countries. The first section is a literature review, which will consist of a brief clarification of economic development and explain different economic development theories, which will help, evaluate whether activities by transnational corporations help accelerate economic development in LDCs. It will also consist of different scholars definitions of outsourcing, networking and linkages further evaluating the costs and benefits of these activities by transactional corporations. The analysis section will consist of a case study of Nigerian offshore drilling. This case study gives a more depth analysis of the negative impacts TNCs can have on LDCs. Transnational companies are contributing to economic
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