Transnational Corporation (TNC) Networks

A multinational corporation houses other offices and factories in different countries and regions (Investopedia.,2014). In addition, these corporations tend to have a centralized office where global management is carried out. Becoming a multinational corporation has the advantages of vertical and horizontal economies of scale as well increased market share due to the increased outputs (Investopedia.,2014). To contrast these corporations can be portrayed as entities that seek political and economic control. While this perception is not always the case it does occasionally occur because big businesses can impact the countries they are in.

Most of individuals draw there meaning of a term from how it is used in a sentence and from our own background, but we all know that can change the meaning of the word. We also know that this can be close or way of base as to the actual meaning. So, let’s see what the definition is for Transnational Corporation. According to West’s Encyclopedia of American Law, “A Transnational, or multinational, corporation has its headquarters in one country and operates wholly or partially owned subsidiaries in one or more other countries.” (Lehman and Phelps, 2008) Here is another definition of the topic “Multinational corporations are corporations whose home offices are in one country but have significant fixed investments in other countries. These investments might be in factories or warehouses, transportation or telecommunications, mining or agriculture.” (Burton, 2002) Now you have two different version of what this type of corporation is. However, my interpretation is, this is a company that

Moreover, the current participation of government in the market economy remains almost similar. It however expanded its mandate to begin playing a critical role in business which includes providing public goods, protecting public health and welfare, safeguarding business, consumers, investor, and bring health competition in the market. More so the role of government is also to stabilize the economy, conserve the environment, regulation of working conditions and finally to protect business properties. All these engagement is to make business environment more favorable for both local and international investors for success of the country economy (Todeva & Knoke, 2009).

It is widely believed by scholars that many of the varying levels of economic development between states are the direct result of a negative correlation between the aforementioned and the varying degrees of state intervention. In most cases it is evident that the more a state intervenes in its economy, the less the country will develop. While, at the same time, a country whose intervention exists at a minimal level will tend to have a stronger economy and a more rapid rate of development. However, it is also important to understand that as with many concepts there will always be extreme cases where the states may not strictly follow this model; in some cases they may even behave completely opposite. These extreme cases are often due to

It also provides a framework for incorporating both the control aspects (integration and responsiveness) identified in the earlier literature on MNCs and the process emphasis of more recent studies ([6] Birkinshaw, 2000; [19] Edwards and Ferner, 2004). Nevertheless, there are some problems with the transnational concept, since the boundaries between different configurations of MNCs (global, multidomestic, international) overlap. However, the network aspects of transnational corporations encourage flexibility, responsiveness and innovation ([4] Bartlett and Ghoshal, 2002, [5] 2003). It is the origin of ideas and the quality of the communication process that leads to what is being integrated across borders and that distinguishes the two types. Therefore, without looking at processes we cannot clearly identify transnationals, or distinguish them from other configurations.

All people around the world make a question: How much should the government influence the economy of a country? And there are many answers. Regulating the public goods in a manner where the negative externalities would be minimized, government’s role is to uphold freedom of the market with government providing safety and stability only for essentials. If there are too many regulations by the government, it will slow down and stop jobs, prices will go up and the economy will slow down. If there is no government at all everyone will act in their own interest and there will be too many negative externalities and the market will become crazy. Still, if the market has more space

States can go about maximising national security through different means such as by military force, economic prosperity and/or the general welfare of its people.

Transnational Corporations as the Primary ‘movers and shapers’ of the World Economy: A critical consideration

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

Whether through their spending policies, taxing policies or lack there of, or days that are considered holidays the state has great influence. These can sometimes can be seen as a harmful set of actions, but as Bandelj and Sowers point out in chapter one these acts by the state have a real importance to how the economy works. The state as noted above takes an important role in managing things that are not natural. Without the government to regulate these things we not be able to sustain these now vital and constructive institutions. This state interference in the market, good or bad, has a profound effect on parts that ripple into the whole of the market. This relationship in the market is on grand scale, but the social institutional relationship does not always have to be.

Transnational corporations refer to “corporations that have their home base in one country and branches, or affiliates, in other countries” (Mooney 2015, 213). An example of such corporation is Microsoft. Microsoft was founded by Bill Gates and Paul Allen in 1975 (Microsoft, 2016). It is “the worldwide leader in software, services, devices and solutions that help people and businesses realize their full potential” (Microsoft, 2016).

As a consequence of economic globalization, industry policies tend to modify. For example, nowadays there is a tendency towards privatization and deregulation. Therefore, the role of national governments has been neglected to a certain extent, because companies become private and markets deregulated.

It is obvious that if used properly, MNCs help to increase the flow of capital to impoversished nations which overall helps to reduce the poverty levels globally and aides in holding up the United Nations mission, which is encouraging nations to seek peaceful solutions to both internal and external conflicts.The resent tread of MNCs follow the role in supporting the United Nations, through helping less developed nations achieve political and economic milestones in an environment that doesn 't involve massive foreign government involvement and attracts foreign direct investment (FDI).

Some people view the state as essential for development. Instead of relying on a social

For this reason, state was not just entitled as a provider of assistance and supervision for industrialization as it was manifested in Japan, South Korea and Taiwan; but its role was protracted as an authority on all operational settlements including technological improvements or adaptations and position and spectrum of the operation itself (Narang, 2012).