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Transnational Corporations. For Good or Evil ?. Corporations were originally located in single countries As time went on they expanded by the use of “Branch Plants”
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Transnational Corporations For Good or Evil?
Corporations were originally located in single countries • As time went on they expanded by the use of “Branch Plants” • By the late 20th century many corporations had branch plants in several different countries, sometimes with their own corporate structure • Such companies came to be known as multinationals History
Multinationals got even bigger as the 20th century ended and the 21st began • Such companies are now less clearly identified with a single nation TransNationals
TransNational corporations now have incomes and values that are the equivalent of some nations • Few are headquartered outside of First World nations TransNationals
The international scope of these corporations is aiding in the breakdown of national borders • Many corporations now provide a number of the same services as national governments • Transnationals have evolved beyond the initial factory, adding many new and exciting fields of endevour TransNationals
The consumer receives an ever widening range of products and services at affordable prices • The increase in world economic growth will result in everyone being wealthier by providing more jobs and great local economic production • The transnational provides the stimulus and capital for emergent economies to make the leap to takeoff • The spread of transnationals results in a faster and more equitable sharing of technological breakthroughs TransNationalsBenefits
The growth of TransNationals encourages the some of the worst aspects of globalization – the loss of cultural identity as U.S., European and Japanese companies dominate world trade and world entertainment TransNationalsDrawbacks
TransNational corporations are so large and diversified they are beyond effective control by government – whose laws apply? • The growth of these corporations will primarily benefit the developed world through good jobs and profit transfers • Developing nations will get the low paying jobs and potential environmental issues, much like they did in the colonial days • Transnationals have no native loyalty except to the corporation so they shop around countries, seeing who will provide the best deal TransNationalsDrawbacks
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