Decent Essays
What are TNCs? Transnational corporations are large companies which use power to control productions that occur in more than one country. According to Steger, “Transnational corporations are the contemporary versions of the early modern commercial enterprises”1. Transnational corporations have become a powerful impact on developing countries by controlling the market, transferring technology, and helping those in need. Transnational corporations help control the economic market in developing countries. TNCs do this by helping the balance of payment export material as a result of increasing the Growth Domestic Product (GDP). An example of this would be manufacturing where companies such as Walmart are much wealthier and larger. By manufacturing plenty of products to larger companies,…show more content…
TNCs trade technology in developing countries to increase production and the use of utilities which are not readily available. In return, this helps countries produce more to export and help TNCs make money and contacts by offering technology to the developing countries that would not otherwise receive easily. Secondly, TNCs help increase the use of technology by producing newer and more advanced technology for countries that do not have access to such advanced technology. This helps countries with GDP incite new ideas, making it easier to develop newer products from resources that are available, resulting cheaper production rates. Newer technology that TNCs offer with their power, help developing countries stay on top by inventing new and exciting material to receive such advantage. By offering technology countries cannot afford themselves, TNCs are able to keep power over the countries since they are offering them technology that they could not possibly have access to in any other way. By providing the countries with more technology, TNCs show a great advantage to
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