• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

'The growth of the influence of the TNCs represents the emergence of a global culture of power without responsibility' (Discuss)

Extracts from this document...


'The growth of the influence of the TNCs represents the emergence of a global culture of power without responsibility' (Discuss) A Transnational Corporation (TNC) is a company that operates in more than one country. The headquarters usually tend to be located in a 'first world' nation (though recently there has been an increase in headquarter locations in Newly Industrialising Countries such as Singapore). Much of the production for the company is often done in 'third 'world' countries, which welcome the TNCs, although much poorer wages tend to be paid to workers in these locations. Thus TNCs are rightly characterised as large, highly sophisticated organisations, richer than most countries and at times more powerful than many governments. A good example of a TNC is the sportswear/fashion company Nike where its headquarters are in Oregon, United States, however the entire manufacturing process is carried out through independent subcontracting in South East Asia - nations such as Indonesia with all financial decisions and research / development carried out in USA. The Nike brand is globally renowned and products can be bought in Europe, Africa, South America. Nike is the manufacturer of football strips of teams across 5 continents. ...read more.


6 This view coincides with that of Jacobs (2001) who claims 'to oppose globalisation is to deny people in poorer countries the benefits of knowledge, technological advance, cultural diversity and travel which we in the rich world enjoy.'7 However it can be argued that such technologies is not guaranteed to be used to its full capacity. For instance a country's comparative advantages increasingly lies in its ability to use effectively new technology, which is generally a function of the capacity of its population to absorb new technologies and incorporate them in the production process (Aharoni, 1991)8. However the introduction of technology may not necessarily help or serve the peoples needs as it may displace workers from jobs that already exist. At the end of the day TNCs are seeking for higher profits seeing the world as one conceptual global space, and is supported by the rapid development of technology in communication, transportation and production. Peter Dicken seems to express this point properly by saying that the TNC is arguably the most important single force creating global shifts in economic activity, and their strategies and operations are much influenced by the forces of technological change. ...read more.


economic activity, as well as hoping to see a reduction in unemployment rates, but is disapproved of by environmental campaigners and those who object to any change. The examples of South Korea illustrate the benefits of TNCs. However 'economic power of this magnitude will have fundamental effects on the global economy, polity and society.'14 It can be argued both countries and TNCs have interests in each other; the key solution is to find the agreement so that all the interests are satisfied. To make this possible it would be necessary a regulation from the international institutions, and that the action of local governments was efficient and democratic, through legislation, execution of laws. Bibliography Abercrombie N., et al, The Penguin Dictionary of Sociology: Fourth Edition, Penguin Books (2000) Bauman, Z. Globalisation: The Human Consequences, Polity Press (1998) Cohen, R & Kennedy P Global Sociology Macmillan, (2000) Chomsky, D. Democracy in a Neoliberal Order (1997) Dickens, P. Global Shift: Transforming the World Economy Sage (1998) Hall et al Modernity and its Futures, O.U.P (1996) Held, D. et al., Global Transformations, Polity Press (1999) Kiely, R. & Marfleet P. (ed) Globalisation and the Third World, Routlegde (1998) Jacobs M. Guardian Newspapers Limited 2001 Fox, J. Postmodern Encounters: Chomsky and Globalisation, Icon books (2001) Websites www.corporatewatch.org.uk www.globaleye.org.uk. www.globalisationguide. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level UK, European & Global Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level UK, European & Global Economics essays


    The higher the level of economic integration, the more likely the concerned elements are to trade. The transactional capacity is consequently facilitated with the development of transportation networks and the adjustment of trade flows that follows increased integration. International trade, both in terms of value and tonnage, has been a growing trend in the global economy.

  2. Economic Growth HSC Notes

    can lessen productivity; by avoiding these wage increases a strong economic growth rate can be maintained.

  1. Comprehensive Anatomy of China

    It's theorized that doing business with China can be cost effective because Confucian ideology is so deeply embedded in the lives of its citizens that they unconsciously function in a Confucian manner.

  2. Corruption and Globalisation - Both of them have been so pervasive in recent years. ...

    Lala Camerer (2002) summarises the effects of bribery and corruption as following: - It affects the economy by undermining growth and development through hindering or deterring foreign and or local investment. - It affects the quality and composition of public expenditure projects; - It undermines the fiscus through non-optimal collection

  1. Where does the World Trade Organisation fit in the overall scheme of international public ...

    politics and vigorous interest group lobbying, unilateral liberalisation is of course an altogether more difficult political proposition than it was in the nineteenth century. Given enduring protectionist pressures and ingrained mercantilist thinking, it is the exception, not the rule. In recent times, governments have overcome these obstacles and embarked upon

  2. Given the fact that Third World countries are underdeveloped (or developing); the causes that ...

    11 For an example Egypt is a third world country that has taken the privatization policy off the U.S. in an attempt to increase productivity. However what actually happened was that the Egyptian government applied privatization to existing industries without bearing in its calculations that it has different economic situations

  1. To what extent has globalisation been benefical to China's economic growth?

    Its main trading partners were socialist countries such as the USSR and Yugoslavia. It was not until 1992 when China declared its intention to establish a "socialist market economy" that it began to lower tariffs. During this time, China began to make substantial tariff cuts.

  2. Why has GDP growth been so slow in Somalia?

    It can lead to tax evasions, as business men may pay bribes to low level officials to secure tax breaks. According to the Core Service Data Unit, nearly 69% of people believe tax collectors are corrupted. The taxes which they are collecting may also be corrupt; custom officials often create

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work