Transnational Corporations As The Movers And Shapers ' Of The World Economy : A Critical Consideration

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

Transnational corporations (TNC’s) have often been regarded by many commentators as the dominant institutions within the contemporary global economy, and popular discourse has regularly painted TNC’s as amoral financial behemoths that transcend state boundaries and plunder the earth’s resources at will. Dicken (2007), in his examination of TNC’s, attempted to allay some of the misconceptions of TNC’s, particularly the notion that such enterprises are truly ‘global’ in form.

The concept of globalization is one that has pervaded public and academic discourse throughout the last three decades. The term is seldom unheard in any
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One of the features of economic globalization is what is known as economic interdependency i.e. an economic downturn in one country can have negative effects on trading partners in other nation states. One such example of this interdependency was during the 1970’s when OPEC (organisation of petroleum producing countries) increased the price oil. This price hike increased the cost of energy production, which caused price inflation in many other countries. Manufacturing and transport became costlier, so profits dropped, and unemployment rose in many countries because of the inflated price of production, so enormous pressure was heaped on the welfare systems and many investors lost confidence (Martell, 2010).

Another prime example of global economic interdependency was the financial crises that occurred in the United States during the latter stages of 2007. Various factors, including the sub-prime mortgage crises, had contributed to this financial catastrophe, which lead to the stock market falling 15% below its peak in 2007 (Grynbaum, 2008:C1, C7), and another dip in 2008 was indicative of an economic recession. The idea that the world’s strongest economies could flourish independently was soon proved to wrong (Ritzer & Dean, 2015). Since US is a consumer of many of the worlds goods, nations that usually export their
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