Positive And Negative Influences Of Transnational...

Since the implementation of the Agreement on Trade and Tarriffs in 1947, the global influence of cross border trade has steadily grown, to become all pervasive in the lives of many citizens around the world. Combining liberal global regulation with incremental advances in transportation and communications technology since World War two, Foreign Direct Investment has been gifted the environment to flourish. But this flourishing has brought concerns concentration regarding power that transnational corporations now possess. Currently, over half of the world’s five hundred largest corporations are based in just four countries – US, Japan, France and Germany (Source). Between 1980 and 1995 the top 100 transnational corporations increased assets by 697%, whilst at the same time employment in those organisations decreased (Mullerat, R 2010 p279). In this essay I will discuss the positive and negative influences that transnational corporations have on states, as well as examining a couple of real world examples of their impact. A transnational corporation is defined as a firm that is owned and controlled by the nationals of one country which conducts business activities or owns production across national borders (O’Brien, Williams p188a). Welcoming transnational corporations can bring direct employment generation to a state. This also stimulates indirect employment generation due to the requirement of inputs and services to such businesses (Aggarwal, A 2007, pp2,3). This is aShow MoreRelatedGlobalization And The Development Of Transnational Corporations977 Words   |  4 Pagesdevelopment of transnational corporations. Nestle exemplifies a transnational corporation established through globalisation, in both developed and developing countries, maximising resources and facilities to further the growth of the company. 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