Are transnational corporations the main beneficiaries of globalisation?
Are transnational corporations the main beneficiaries of globalisation? "Two hundred giant corporations, most of them larger than many national economies, now control well over a quarter of the world's economic activity." Anderson & John Cavanagh (2000). Transnational corporations (TNC's) are wielding more power and influence than ever before, they have got so large that some have more financial clout, and employ more people than entire nations. This essay will expose how one of the most well-known Western TNC's (Coca-Cola), has resided in the less developed country (LDC) (India) causing severe drought, then how they were subsequently band from India through legal action. Then discuss if TNC's really are the main beneficiaries of globalisation through the use of case studies and the media. Obviously, there are other beneficiaries of globalisation that have done extremely well: these be entrepreneurs, newly industrialised countries (NIC's) in the East, and in some cases the consumer. However, this essay's primary focus is Coca Cola and how they operate with regard to their enormous profits; social responsibility and whether or not this continued exploitation can be sustained. This particular case study exposes how Coca Cola resided in the Indian state of Kerala. "Three years ago . . . the . . . [this] little patch of land yielded 50 sacks of rice and 1,500 coconuts a year.
Transnational Corporations - the Good, Bad and the Ugly Formatted
What is a TNC? TNCs (Trans-National Corporations) 'are corporations that operate in more than one country or nation at a time.' In fact, large TNCs like McDonalds, Nike and General Motors Company have become some of the most powerful economic and political entities in the world today. The rise of the brand name, globalisation, mergers and acquisitions have helped to expand the footprint of major TNCs to developing countries and increase the budget of such large TNCs to larger than some of the world's developing countries. For this reason, it is almost impossible to impose national law on these large TNCs, and they are effectively a law unto themselves. In fact, out of the top hundred economies in the world, 51 are TNCs and only 49 are countries. This leads to all sorts of ethical, social, environmental and labour problems, which cannot be fixed easily and so are usually left alone. This is one of the main reasons why TNCs are sometimes considered evil. TNCs are usually based in the larger countries like America, Japan etc. (Sources for the above: Fortune.com, 2002 Global 500, and World Bank, World Development Indicators online.) The Structure of a TNC The corporate structures of TNCs can be divided into two main sections, but there are infinite variations of a TNC's structure. The two main sections are horizontal corporate structures and vertical corporate structures, *
The Impact of Transnational Corporations on Less Economically Developed Countries
David Pearce The Impact of Transnational Corporations on Less Economically Developed Countries A transnational (TNC) corporation is simply a large business organisation which operates and has ownership of assets in more than one country. Most TNCs operate in just a few countries, are involved in manufacturing and services and have their head offices in more developed countries. TNCs are responsible for employing over 40 million people worldwide, indirectly influence an even greater number, and to control over 75 per cent of world trade. At first, many branches of TNCs were located in economically less developed countries, but there has been an increasing global shift to the affluent markets of Europe, North America and Japan. The reason why TNCs originally decided to locate in less developed countries was due to the existence of valuable resources, but the most important reason was the level of incentives offered by the home government. If a TNC decides to settle in an LEDC, there will be huge benefits. Many new jobs will be created, which will be filled by local labour. The jobs will probably be better paid than other jobs supplied by industry which developed within the country. On the other hand, the wages will be much lower than the wages given for the same job in an MEDC. This is another reason why TNCs choose to create branches in LEDCs. The jobs supplied by the TNC
On Balance, are the transnational Corporations "good" or "bad" for nations and their citizens and for the global economy as a whole?
Heather Pollitt Crim/Soc Shane o'Neil Globalisation Group B On Balance, are the transnational Corporations "good" or "bad" for nations and their citizens and for the global economy as a whole? In today's society it is hard to imagine going to work for very little wages, or even sending a child out to work. Imagine having to work in really poor conditions and every day is a health and safety hazard. Well, unfortunately these are daily routines for those who work in some transnational corporations (TNCs). The transnational corporations are 'firms which [have] the power to co-ordinate and control operations in more than one country, even if it does not own them' (Dickens, 1998:177, as cited in Macionis & Plummer, 2000:367). These corporations, mainly the major ones are owned by a multitude of people, including stockholders and even other corporations. And one of the main reasons they wish to locate abroad is cheap labour. But can we say the transnational corporations benefit nations and their citizens? Well, one first area to consider is why do the TNCs want to locate abroad? The transnational corporations would probably answer they 'have to be where the goods are either grown or the oil extracted', (Cohen & Kennedy, 2000:119). However another reason is the potential to have cheap, unskilled workers? And unfortunately many workers tend to live in poverty and so find
Multi-National Corporations
Management Prepared By: Hannah-Jean Dias 3374932 Insiya Lokhandwala 3531168 Papia Siddique 3540285 Emirhan Sanli 3382606 Huma Shahid 3538394 Submitted To: Ms. Conchita Fonseca Professor, College of Undergraduate Studies University of Wollongong in Dubai Date: 2nd April 2009 Table of Contents .0 Executive Summary 2.0 Introduction 3.0 Concept of Multi-National Corporations 4.0 Issues and Challenges 5.0 Multi-Domestic Corporation 6.0 Issues and Challenges 7.0 Global Company 8.0 Issues and Challenges 9.0 Transnational Company 0.0 Issues and Challenges 1.0 Born Globals 2.0 Issues and Challenges 3.0 Micro-National Corporations 4.0 Issues and Challenges 5.0 Perspectives in Multi-National Corporations 6.0 Ethnocentric approach 7.0 Polycentric approach 8.0 Geocentric approach 9.0 Regiocentric approach 20.0 Global Strategy Viewpoint 21.0 Real Life Examples 22.0 Conclusion 23.0 Reference List .0 Executive Summary This report is written and compiled by Hannah-Jean Dias, Emirhan Sanli, Papia Siddique, Insiya Lokhandwala and Huma Shahid. The report addresses the issues and challenges encountered by Multi-National Corporations. Multi-national corporations are operated on the basis of different perspectives. The report elucidates the various perspectives which could be integrated by corporations. Moreover
Global and Transnational Management.
PREPARING FOR THE FUTURE: EVOLUTION OF THE TRANSNATIONAL SUMMARY AND ASSOCIATED CURRENT DEVELOPMENTS Prepared By: Stephen Shank and Scott Stiverson Professor: Dr. Nabarun Ghose Global and Transnational Management MGT614 (90) Tiffin University Spring Term I - 2004 February 4, 2004 Tiffin University Identification Numbers: 3108 / 0862 SECTION I - CHAPTER SUMMARY INTRODUCTION In the 17th century, English dramatist and novelist Henry Fielding quoted "Now, in reality, the world have paid too great a compliment to critics, and have imagined them to be men of much greater profundity then they really are." This statement applies to critics of Multinational Corporations (MNCs) who have been quick to point-out the difficulties companies had during the recessionary period of the late 20th and early 21st centuries. American giants such as Ford and Boeing as well as established European firms (ABB, Olivetti, and Philips) and even Japanese firms (Mazda, Yamaha, Toshiba) have struggled mightily and have been vulnerable targets for critics. These critics contend this trend will continue, and MNC's will eventually collapse to the hands of more "agile1" corporate structures that are better suited to keep pace with continuously-evolving markets and technological advances. However, as writers of this paper we are in concurrence with the text authors that MNC's are not in
The past fifty years have seen a rapid growth in Transnational Corporations. Where has this growth occurred and why has it been so rapid?
Manufacturing Industry - Transnational Corporations The past fifty years have seen a rapid growth in Transnational Corporations. Where has this growth occurred and why has it been so rapid? A transnational corporation (TNC) is a large business organisation that operates and has ownership of assets in more than one country. TNCs are responsible for a large percentage of total world employment, production and trade and are therefore the major contributor to Foreign Direct Investment (FDI), equipment and property that is owned by businesses outside their home country. There are about 37,000 major TNCs. They have been changing rapidly by expanding through mergers and takeovers and have become 'the powerful players in the global village'. In the 1960s transnational companies accounted for 17% of the worlds Gross Domestic Product, but by 1995 it had reached 32%. TNCs therefore wield huge economic, financial and political power an their activities affect the entire society of a particular country. He supporters of TNCs suggest that they are responsible for fuelling development and bringing prosperity to millions. Some say they wield far too much economic, political and social power, that they may carelessly exploit workers and that they introduce values and desires that, in non-western countries in particular have harmful and moral effects. Growth of TNCs has occurred because
Referring to both pharmaceutical and tobacco companies, explain how transnational corporations can influence the health of people in countries at different stages of development.
Referring to both pharmaceutical and tobacco companies, explain how transnational corporations can influence the health of people in countries at different stages of development (15) Both pharmaceutical and tobacco companies can be transnational corporations and some wield enormous international power and influence covering over one hundred countries with billions of pounds worth of profit; in 2009, GlaxoSmithKline had a net income of approximately £6 billion! Some corporations have, for example, used their profits to help fight widespread diseases in less economically developed countries (LEDCs), such as GlaxoSmithKline's help in the fight against Lymphatic Filariasis in Asia, Africa and Latin America. Some have set up health programmes in more economically developed countries (MEDCs) to reduce common health problems in these areas, such as different types of cancer. However, some corporations only supply people with the means to deteriorate their health, such as some tobacco companies like British American Tobacco, especially in LEDCs, but both pharmaceutical & tobacco companies play an important role in the health of the world's people. A pharmaceutical company is a company, which develops, produces and markets drugs licenced for use as medications, so obviously these companies play a huge role in the health of people worldwide as they provide medication against diseases
"We now live in a world of multinational and transnational corporations" (Abercrombie and Warde). What implications does this have for us?
"We now live in a world of multinational and transnational corporations" (Abercrombie and Warde). What implications does this have for us? This is a question about the effects of globalisation on the world. Globalisation is quite a recent phenomenon, with the term only really being coined in the 1980's, however the concept has been around for decades, even centuries with the earliest expansion of European capitalism dating back to the early 16th century with the beginnings of colonialism. However, the rapid growth of globalisation began in the late 19th century with the build up to the 1st World War and the great depression forcing countries to trade. Following WW2 companies began to look globally for expansion with new markets now available. The 2nd industrial divide and development of new technologies, especially in the field of communication led to development of international business and when the Berlin Wall fell and the USSR broke up, capitalism was dominant and new areas of possibility began appearing. With the communication revolution that is occurring, especially the Internet and large corporations such as McDonalds spreading throughout the world globalisation is a reality that affects every single one of us in one way or another. Globalisation is such a big issue (with 2882 academic papers and 589 books written in 1998 alone), it is hard to cover all the affects in
"Legal control of multinational corporations: problems and prospects".
LAW 410 ASSIGNMENT 2 Suggested Topic #25 "Legal control of multinational corporations: problems and prospects" The greatest evil is not now done in those sordid "dens of crime" that Dickens loved to paint. It is not done even in concentration camps and labour camps. In those we see its final result. But it is conceived and ordered (moved, seconded, carried and minuted) in clean, carpeted, warmed and well-lighted offices, by quiet men with white collars and cut fingernails, and smooth-shaven cheeks who do not need to raise their voices. (C.S. Lewis, The Screwtape Letters) As the name "Multinational" suggests, today's corporate giants are no longer shackled by the constraints of international borders. Previously the bulk of world production occurred within national boundaries, but in recent decades trade and production has become increasingly globalised, and corporate activity has diversified and multiplied. The market is now global, as is capacity for production. Legal and political framework is traditionally based on the nation state, however economic activity is no longer such, and it is this mobility of capital that threatens to undermine the power of national governments to deal with traditional economic and social issues1. Critics charge that the ability of multinationals to manage production on a global scale and leap national borders in search of lower costs and
