...Role of transnational corporations Role of Transnational Corporations (TNCs) 1.0 Introduction A transnational corporation (TNC) or multinational corporation (MNC) is a firm which has the power to co-ordinate and control stages in operations of production chain in more than one country, even if it does not own them. Transnational Corporation take advantage on national differences in production factor costs such as natural resources, labour, and state incentives where it has the ability to switch its resources and operations between locations at a global scale. 2.0 Role of Transnational Corporations (TNCs) The role of transnational corporations (TNCs) or multinational corporations (MNCs) has created the wealth, new job opportunities and new tax revenues that arise from multinational corporations' generated income. By increasing the efficiency of capital flows, multinational corporations (MNCs) will contribute in reducing the levels of world's poverty in developing countries, improve their infrastructures, strengthen their human capital and always encourage countries to cooperate and seek peaceful solutions for conflicts. Transnational corporations (TNCs) or Multinational corporations (MNCs) have responsibilities on its employers, customers, governments, suppliers and communities as well as towards shareholders. Corporate social responsibilities (CSR) that take part in protecting TNCs' business where businesses must include duty, do business honestly, legally...
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...Walmart a Transnational Corporation Globalization: Business and Society in the Information Age James Salerno The transnational corporation that will be examined in this paper is Wal-Mart - the largest corporation in the U.S. that is also a major transnational corporation (TNC). Since the 1990s, Wal-Mart has sought to transform the company into a global brand by expanding its operations all over the world, starting from the Americas to Asia (Featherstone, 2005; Rowell, 2003). More than just the largest retailer in the U.S., Wal-Mart's strategy of offering the lowest prices to customers, as encapsulated in its slogan -- "Low Prices. Always." -- has reshaped the culture of the retail industry and consumerism throughout the world (Yancy, 2004). As one of the largest TNCs in the world, Wal-Mart is an integral part of the business of international trade in information and entertainment. Various theories such as the modernization theory and the dependency theory have been formulated to capture the inextricably interwoven relationship between the mass media and TNCs. While TNCs have exerted imperialistic control over global trading arrangements by "dominating markets, resources, production and labor," their influence over the mass media has ensured that their domination practices are culturally justified (Thussu, 2000, p. 61). More specifically, since the media that are responsible for the transmission of information...
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...Discuss the political and economic effects of different types on transnational organizations. SAN3508 Aravinth Raj Palpandian 1 Introduction This essay has the topic of how political and economic factors of different types affect a transnational organization. It is a theory and concept based essay using frameworks from the course literature. The main body of our essay will contain answers to below queries: What is globalization and how it gave rise to Global firms (stimuli). How Economic factor leads to certain advantages and attributes of Global firms / Transnational Corporations / Multi National Enterprises. How does country related political factors affect these firms and their policies. Then, we conclude our essay based on the finer details derived from our extensive discussion. Concepts and examples that are used to answer our queries in main body fall under the following topics: Globalization and global firms. Stimuli for becoming transnational: which in short is to prove that market-economy driven industries eventual step for growth is to go global. Economic Attributes and Advantages. Political factor and Conclusion. Globalization and Global Firms According to Hall (2011), a change has been occurring steadily over a span of last three decades where we have been moving away from a world in which national economies were a singularity and remained largely self-contained due to varying differences between them. We are working towards a...
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...Advantages and Disadvantages of Transnational Corporations Host Country: Advantages 1. The investment level, employment level, and income level of the host country increases due to the operation of TNC's. 2. The industries of host country get latest technology from foreign countries through TNC's. 3. The host country's business also gets management expertise from TNC's. 4. The domestic traders and market intermediaries of the host country gets increased business from the operation of TNC's. 5. TNC's break protectionism, curb local monopolies, create competition among domestic companies and thus enhance their competitiveness. 6. Domestic industries can make use of R and D outcomes of TNC's. 7. The host country can reduce imports and increase exports due to goods produced by TNC's in the host country. This helps to improve balance of payment. 8. Level of industrial and economic development increases due to the growth of TNC's in the host country. Disadvantages 1. TNC's may transfer technology which has become outdated in the home country. 2. As TNC's do not operate within the national autonomy, they may pose a threat to the economic and political sovereignty of host countries. 3. TNC's may damage the domestic industry by monpolising the host country's market. 4. In order to make profit, TNC's may use natural resources of the home country indiscriminately and cause depletion of the resources. 5. A large sums of money flows to foreign countries in terms of payments...
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...The Sony Corporation: A Case Study in Transnational Media Management by Richard A. Gershon, Western Michigan University, U.S.A. and Tsutomu Kanayama, Sophia University, Japan The transnational corporation is a nationally based company with overseas operations in two or more countries. What distinguishes the transnational media corporation (TNMC) from other types of TNCs, is that the principle product being sold is information and entertainment. The following paper is a case study analysis of the Sony Corporation; a leading TNMC in the production and sale of consumer electronics, music and film entertainment and videogame technology. There are two main parts to this study. Part I. examines the history and development of the Sony Corporation. It builds on the theoretical work of Schein, (1984, 1983), Morley, Shockley-Zalabak (1991) and Gershon (2002, 1997) who argue that the business strategies and corporate culture of a company are often a direct reflection of the person (or persons) who were responsible for developing the organization and its business mission. Second Part examines the Sony Corporation from the standpoint of business strategy. Special attention is given to the subject of organizational culture and strategic decision-making. A second argu- ment of this paper is that while Sony is a TNMC, the organization is decidedly Japanese in its business values. This is beginning to change in the face of global competition and the need to improve business performance. This...
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...Discuss the Role and Impacts of Transnational Corporations in the Global Economy (40 marks) Transnational Corporations (TNCs) are companies which are able to co-ordinate and control its production, in more than one country during economic globalisation, examples of which include Nike, McDonalds and IKEA. These companies use differences between a country’s cost of production, natural resources, labour and state incentives to their advantage. This allows them to spread their resources and production between locations globally to minimise cost to the company. In recent decades the increasing wealth of TNCs has led to more dominated roles in the global affairs this has many impacts on the economy, global population and environment both positively and negatively. Transnational corporations have a very large role to play in the global economy. With the economies of developing countries, such as China and Brazil, generally growing due to the exchange of information and goods (globalisation) companies are keener to invest in them to increase their turnovers and overall development. TNCs have globally increased new job opportunities and new tax revenues even for the poorest of countries, by doing so they have contributed in reducing the levels of world poverty and have improved infrastructure for developing countries. TNCs are also incredibly wealthy. Ford and General Motors are two companies which exemplify the wealth of TNCs. Their combined annual income is equal to the GDP of all...
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...This essay will first attempt to define globalisation and define neo-liberalism. There is a close interconnection between the two concepts, especially on an international level therefore their positive and negative impacts on crime and criminal justice will be discussed together and then a separate analysis of neo-liberalism and its effects on crime will be examined from a local perspective. Globalisation defined Globalisation is not static, but is rather a dynamic process which involves the growing interconnectedness of states and societies that enmesh human communities with each other, easy mobility of goods and services across countries, electronic communications transcending borders and creating independence from territorially confined units of political power (Massari 2003). These key tenets, which encompass the definition of globalisation, will be discussed with regard to their impacts on crime. Neo-liberalism defined Neo-liberalism can be defined as a set of political beliefs which include the idea that the role of the state in crime control should be minimal as the only legitimate purpose of the state is to protect the individual (O’Malley 2008). Neo-liberalism generally includes the belief that the most efficient way to organise all exchanges of goods and services in human society is through freely adopted market mechanisms leading to greater cost effectiveness, individual liberty and moral virtue (Thorsen & Lie 2000). Individuals in society are empowered...
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...MECHANISM FOR THE GOVERNMENT’S COMPREHENSIVE PROGRAM ON COMBATING TRANSNATIONAL CRIME* WHEREAS; the globalization of the world’s economies and advances in information technology have significantly contributed to the growing sophistication of transnational crimes and their continuing threat to our nation’s political, economic and socio-cultural stability and security; WHEREAS, the United Nationals Convention against Transnational Organized Crime, which the Philippines signed on 14 December 2000 and ratified on 28 May 2002 encourages the formulation of coordinated national policy, legislative, administrative, and law enforcement approaches to prevent and combat transnational crime more effectively; WHEREAS, The ASEAN Declaration on Transnational Organized Crime and its implementing instruments, the ASEAN Plan of Action to Combat Transnational Organized Crime and its Work Programme, call on all Member-States of the ASEAN to solidify governmental efforts in areas of information exchange, training, legislation, law enforcement, institution-building, and extraregional cooperation; WHEREAS, to address the range of transnational crimes affecting our country, Executive Order No. 62 issued on 15 January 1999 creating the Philippine Center on Transnational Crime to formulate and implement a concerted program of action of all law enforcement intelligence and other agencies for the prevention and control of transnational crime; WHEREAS, current realties demand a comprehensive, focused concerted...
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...organizations, the trafficking, trade in precursors for the production of coca, posters gasoline, counterfeiters, etc. There is very little agreement about what is organized crime. The various perspectives with which he has been treated show that protein is a highly changeable phenomenon, complex, and therefore difficult to apprehend in theoretical concepts and, even more, in criminal law. Several factors combine to pay in this difficulty. First, it is a relatively new phenomenon, or at least perceived in its social dimension does very little in regard to Europe. Second, it is a more abstract traditional criminal phenomena such as drug trafficking offenses, money laundering, human trafficking, etc.; methods of operation; criminal liability; transnational activities, and their respective political criminals, among others. Third, the work of the various countries is strongly influenced by their own national realities of action of organized criminal groups. Fourth, being a phenomenon of enormous complexity, it has been approached from different perspectives of analysis, such as economic, political, sociological, anthropological, legal, being more inclusive few works with visions...
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...growing corporate revelation (exposure) to social, cultural and political values in societies globally and also to regulate corporate behavior. It is discussed that corporate role are shifting with this changing towards a societal governance ruled over by traditional political actors. It guides to an argument of the results of a process for a responsible corporate role in globalised world. This analyse includes four different articles. The goal of this case is to figure out the results of the social and political mandate of the corporation. This study also contains transnational companies which are getting more powerful in affecting the political, social, and economic circumstances in their host families. Introduction What is the effects of globalization on business firms’ relations and responsibilities ? The goal of this case to figure out the results of the social and political mandate of the corparation. This study also contains transnational companies which is getting more powerful to affect the political, social and economic circumstances in their host families. Some cases assumed that internalization guide to conversion of business sensation of its role in society. Globalization is a process which refers distinctly to economic globalization. It means that the integration of national economies. National borders and distances start to lose their economical and political importance with global integration. A Nation state’s power on regulation decreases .Global...
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...International Business Malaysia Abstract This abstract will include some information about our research in a briefly way to show more about Malaysia and its transnational corporations. First, we will talk about the role of transnational corporations (TNCs) in the Malaysian economy with specific attention to its environmental implications, and regulatory measures. We will discuss the role of transnational corporations (TNCs) in the Malaysian economy, its environmental implications, and regulatory measures to shield harmful effects. Second, we will also conclude that while environmental considerations did not appear very important in the relocation of TNCs to Malaysia, there is evidence of environmentally inferiority in Malaysia. However, it appears that many TNCs have new environmental practices in place, and that a number of TNCs have environmental management in the country. And as a conclusion, we will include the major sectors of transnational corporations in Malaysia and the main obstacles that affect it through the global business. Criteria 1) Starting Business Many foreigners were confused as to which is the right entity they should have to start their business in Malaysia. Starting a business in Malaysia takes only 11 days. There are overwhelming questions facing by foreigners especially Malaysia is totally new to many. * My Business nature, is it eligible for foreign ownership? * Which is the best recommended tax structure for my...
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...practiced by Transnational Corporations in their business operations due to cost constrain (Ashley E, 2008). (Please refer to appendix 1.0 for more information on Transnational Corporations). Furthermore, the main factor that forces many companies to be more low cost oriented is due to the massive pressure of the current competitive market and also the destructive price wars causes by globalisation that has been circulating in the market ever since the pre-1900s era (Henry A, 2008). (Please refer to appendix 1.0(A) for more information on History Of Outsourcing). In addition to that, by cutting cost in any way can eventually effects the specific company`s position in the market and that is why many companies also tend to choose those low wage countries in Asia for the outsourcing of their non-core business activities (Ashley E, 2008). The non-core business activity that the companies usually seek for outsourcing will be ranging from packaging and distribution, assembly and many more. Thus, through the existence of outsourcing ultimately enabled companies to focus on the prospective directions of activity, utilise the available resources efficiently, development of core competencies and to gain competitive advantage as well (Lacity MC & Willcocks LP, 2001). In accordance with that, the first country that was widely noticed to be the main option for companies to seek for outsourcing is none other than China whereby those large companies like Transnational Corporations whose is...
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...councils in different countries have different names. The most famous works council is in Germany. There is a complete system in German works councils. The member in works council is changed every four years by the common workers in the companies. EWCs were established on 22 September 1994. It is the most important event in the global industrial relations in recent years. It aims to inform and consult employees in companies at European Union level. The reason for the establishment of EWCs is partly that the transnational restructuring was brought about by the Single European Act (Markus Hertwig&Ludger Pries&Luitpold Rampeltshammer, 2011). It can communicate with the senior management of the big transnational corporation. Same information about the translational policies and measures are also told to the workers in different countries. European Works Council also provides opportunities for the representatives to discuss and develop a common response to the transnational plans. Purpose and implementation The purpose of EWCs is to promote the participation of the employees of European level in the information-sharing and consultation in multinational companies. Through the representatives, different information of the multinational companies can be conveyed and shared by the workers. In addition, it aims to reduce the conflicts between the workers and the multinational companies (Michael Whittall&Herman Knudsen&Fred Huijgen). EWCs also try to maintain and improve the right...
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...As the economy expands, the demands of the people expand which cause marketing innovation to climb to new heights. In the new millennium, most companies it has become easier for companies to change as rapidly as the economy. Vertical integration, mergers, acquisitions, strategic alliances and cross-media ownership allows companies to become transnational companies. In recent times, media corporations have a higher chance at becoming transnational companies because of the demand from the economy. Media has risen to the top and will continue to do so as long technology expands. In July 2004, a new social media site was establishing itself in the college community. Incoming freshmen, current college students and professionals were able to make the transition from Myspace to Facebook. Facebook was a place for friends to connect and network with one another on a professional and social level. Soon Facebook opened its website to non-college students and from there the expansion began. One of the bases for a company to be considered a transnational media corporation would have to include headquarters in an international location. In the case of Facebook, not having headquarters or a building in a foreign country does not exclude this company from being a TNMC. Even with this missing component Facebook makes up its lack of being physically present in foreign territory by meeting the other requirements of a TNMC. Acquisitions and TNMCs are partner terms in acquiring the power needed...
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...In the article “The link between patenting life forms, genetic engineering and food security” (Review of African Political Economy, 1998) the author, Wangari Mathai, concludes that transnational corporations should be restrained to patent seeds using genetic engineering biotechnology. She supports her argument with the following claims. Firstly she reasons that corporations gain private monopoly rights on the raw biological materials by confiscating human resources without prior consent. Subsequently, the development of alternatives to the patented material is deliberately blocked. Secondly, Mathai highlights patenting a reason for food insecurity among farmers due to un-reusability of patented seeds. The seeds developed by genetically engineered technology does not germinate after harvesting, thereby, forcing the poverty ridden farmers to purchase seeds every season from the corporation. I agree with Mathai to some extent; however I feel that some of her reasoning requires further elaboration to make her argument more convincing. In my opinion, the author has failed to highlight on the fact that there might be a possible loss of cultural value and traditional community knowledge with limited or no compensation. Patent monopolies on plant varieties threaten developing countries in three ways. First, by increasing prices so far that most citizens have zero access to these new developments; second, by blocking local production whenever the patent owner so chooses and lastly...
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