Also called Multinational Corporations, are those corporations which operate in more than one country at the same time. These companies have become some of the most powerful political and economic factors in the world today. Many of these companies even have more power than the nation-states who's borders they operate across.
The number of Transnational Corporations located in the world has jumped from a mere 7,000 in 1970, to over 40,000 this present day, and more than half of these corporations come from only five nations: United States, France, Germany, Netherlands, and Japan. Together these 40,000 corporations hold about 90% of the world's technology and product patents, and are involved in 70% of world trade.
These corporations have their downsides and upsides. TNC's allow consumers in 1st world countries like the United States and Canada, to buy products at an extremely low price, but they destroy small independent business's, and once all of these small business's are gone, corporations have created monopolies and can charge whatever price they want. In 3rd world countries like Africa, TNC's can come in and create many jobs for the population through privatization and outsourcing. The jobs created through the previous methods are great for the country and the people in it, but if a commodity like water supply in Africa all of the sudden becomes privatized, most of the population still can't afford to pay for water, and the situation is worse than before.
Some examples of Transnational Corporations are:
Horizontally integrated Transnational corporations manage production establishments located in different countries to produce the same or similar products. (example: McDonalds)
Vertically integrated Transnational corporations manage production establishments in certain country/countries to produce products that serve as input to its production establishments in other country/countries. (example: Adidas)
Diversified Transnational corporations manage production establishments located in different countries that are neither horizontal nor vertical nor straight, nor non-straight integrated. (example: Microsoft)
Below is a video with a negative point of view on corporations. It shows the tactics that corporations will use to get what they want, and how they go unpunished because of the power they have. As you can see there is no video with a positive point of view on corporations, and that is because most people seem to be on the negative side, or against them, which is ironic when they buy from them everyday, or in alot of cases work for them.
Transnational Corporations (TNC's)
Also called Multinational Corporations, are those corporations which operate in more than one country at the same time. These companies have become some of the most powerful political and economic factors in the world today. Many of these companies even have more power than the nation-states who's borders they operate across.
The number of Transnational Corporations located in the world has jumped from a mere 7,000 in 1970, to over 40,000 this present day, and more than half of these corporations come from only five nations: United States, France, Germany, Netherlands, and Japan. Together these 40,000 corporations hold about 90% of the world's technology and product patents, and are involved in 70% of world trade.
These corporations have their downsides and upsides. TNC's allow consumers in 1st world countries like the United States and Canada, to buy products at an extremely low price, but they destroy small independent business's, and once all of these small business's are gone, corporations have created monopolies and can charge whatever price they want. In 3rd world countries like Africa, TNC's can come in and create many jobs for the population through privatization and outsourcing. The jobs created through the previous methods are great for the country and the people in it, but if a commodity like water supply in Africa all of the sudden becomes privatized, most of the population still can't afford to pay for water, and the situation is worse than before.
Some examples of Transnational Corporations are:
Below is a video with a negative point of view on corporations. It shows the tactics that corporations will use to get what they want, and how they go unpunished because of the power they have. As you can see there is no video with a positive point of view on corporations, and that is because most people seem to be on the negative side, or against them, which is ironic when they buy from them everyday, or in alot of cases work for them.