StudentShare solutions
Triangle menu

Transnational Corporations - Essay Example

Extract of sample
Transnational Corporations

Basically, TNCs' aggregate yearly sales would correspond to or are greater than the annual gross domestic product (GDP) of most countries. A classic example would be Itochu Corporation's sales which exceed the gross domestic product of Austria, while those of Royal Dutch/Shell run parallel with Iran's GDP. Together, the sales of Mitsui and General Motors are greater than the GDPs of Denmark, Portugal, and Turkey combined, and US$50 billion more than all the GDPs of the countries in sub-Saharan Africa (UNCTAD 1994).
Because of their considerable size, TNCs are likely to control and dictate in industries where output and markets are oligopolistic, or converged in the hands of a comparatively small number of firms. The top five car and truck manufacturers are responsible for nearly 60% of motor vehicles' global revenues. The five leading oil companies account for over 40% of the industry's world market share (The Economist 1993).
TNCs' operations cover the whole world; however, they are based for the most part in Western Europe, North America, and Japan. The Swiss electrical engineering giant ABB has facilities in 140 nations, while Royal Dutch/Shell digs up for oil in 50 countries, conducts refining activities in 34 homelands, and markets its products in 100 nation states. Offices of the US food processing firm H.J. Heinz cover six continents and Cargill, the US's largest grain company operates in 54 countries. Britain's major chemical firm ICI has manufacturing operations in 40 nations and sales affiliates in 150 countries (Hoover 1993).
The term transnational corporation means a "for-profit enterprise" which is explicitly identified by two salient features -- 1) engages in enough business activities -- including sales, distribution, extraction, manufacturing, and research and development -- outside the country of origin so that it is dependent financially on operations in two or more countries; 2) management decisions are made based on regional or global alternatives (Hadari 1973). In essence, transnational corporations are recognised as prime components of capitalism and a most important conduit of globalisation.

Globalisation, TNCs and Host Governments
In this age of frenetic globalisation, the transnational corporation is indisputably the free markets' first-class and "untouchable" agent. Economically, these corporate giants dwarf the resources of many developing countries and evidently such status can be attributed to its extraordinary capacity and swift faculty to create wealth. Dubious however, is its reputation as an economic distributor, as a democratic contributor, and as a supporter of human rights in general (Letnes and Westveld 2004). These issues are specifically debatable in developing countries where some view the transnational corporation as a vehicle of development while others see it as nothing but a neo-colonial tool of exploitation.

Interaction is Motive-Dependent In the face of contradictory motivations and intentions and the fact that TNCs overshadow many of the smaller economies in bargaining power (Evans 1985, 216-21; Walters and Blake 1992, 124), TNCs engage in positive dialogues with host countries economic and social conditions (especially in the sphere of human rights) -- out of either a genuine sense of social responsibility or out of respect for the market force of the spotlight phenomenon ...Show more

Summary

In the complex arena of international business, transnational corporations or TNCs are the world's largest economic institutions. Approximately 300 prime TNCs control and maintain at least one-quarter of the whole world's productive assets, worth about US$5 trillion (The Economist 1993)…
Author : wyattjast
Transnational Corporations essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Transnational Corporations"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Transnational Corporations Essay
This has led to the emergence and growth of several transnational corporations, especially after the World War II (Ietto-Gillies, 2012), that have now become some of the influential non-state global economic actors (Madeley, 1999; Nowrot, 2011). A transnational corporation (TNC) is a large business organization that operates in more than one country at the same time (Madeley, 1999, p.1; Ward, 2003).
9 pages (2250 words) Essay
Transnational Corporations and the International Human Rights Regime
The principal cause of the dilemma involving transnational business corporations and human rights violations is the vacuum in governance created by globalization. Multinational companies transacting across borders may circumvent the framework of governance imposed by national law, because the parties of to the contract or transaction are not totally within the rule of one nation.
10 pages (2500 words) Essay
Transnational Corporations Essay
TNC's are usually so structured that one "corporate" branch exerts influence over the others, and/or resources, responsibilities, knowledge, and protocol are shared among them. Transnational corporations participate in many globalising activities, and in the countries that host them they contribute in many ways to the dynamics of the economy.
13 pages (3250 words) Essay
What is the evidence that multinational/transnational corporations pose a threat to state sovereignty
In order for a business to survive it must grow. For growth to be optimal, management must first be able to identify the most attractive prospective leads. [Falk, 1981] The country as a whole, specifically geography, government, and financial
4 pages (1000 words) Essay
What is the evidence that multinational/transnational corporations pose a threat to state sovereignty
Allegations against these profit seeking corporations include destructive competition and insidious plots to economically and politically manipulate entire economies. Maybe the worst charge is that multinational corporations are methodically
6 pages (1500 words) Essay
One consequence of globalisation is that transnational corporations have become increasingly adept at creating new ways of organizing and outsourcing production. Critically evaluate this statement
All these factors help explain the rise of truly multinational companies, whose products sell in all corners of globe and which belong to no particular country. Similarly, the rules of business have changed greatly during these years. In the
10 pages (2500 words) Essay
Compare and contrast ANY TWO of the following approaches to the governance of transnational corporations (TNCs)
Multinational corporations are more today than they were a few years ago. Global business is growing at a fast rate and focus is on how these businesses are governed (Bakan,
6 pages (1500 words) Essay
Whether Transnational Corporations and Other Business Enterprises are great threat for Human Rights
(4) What are the remedies of aggrieved parties in the case of human rights violations? How may the provisions of the international human rights law be enforced upon Member-States and non-State actors,
8 pages (2000 words) Essay
How can international human resource management respond to the need for global integration yet also local responsiveness in transnational corporations
The biggest challenge in global expansion, as is many multinationals have found out, is not business development, but the streamlining
8 pages (2000 words) Essay
The influence of cultural disversity on employees workplace performance in transnational corporations in algeria
view cultural diversity not as an impediment to performance and productivity of employees, but rather take it as an advantage that contributes towards the goodness of the organization through integration of various skills, talents and ideas (Shachaf, 2008,P.21).Cultural
3 pages (750 words) Essay
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Click to create a comment
Contact Us