Transnational

CorporationsFor Good or Evil?

His

tory

Corporations were originally

located in single countries

As time went on they

expanded by the use of

“Branch Plants” By the late 20 th century

many corporations had

branch plants in several

different countries, sometimes with their own

corporate structure Such companies came to be

known as multinationals

TransN

ati

onals

Multinationals got even bigger as the 20 th century ended and the 21st began

Such companies are

now less clearly identified with a single

nation

TransN

ati

onals

TransNational corporations

now have incomes and

values that are the equivalent of some nations Few are headquartered

outside of First World

nations

TransN

ati

onals

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

TransN

ati

onals

TransN

ati

onals

Benefits

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

TransN

ati

onals

Benefits

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

TransN

ati

onal s

Dra

wback

s

TransN

ati

onals

Dra

wback

s

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

TransN

ati

onals

Dra

wback

s

Work

s C

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