Transnational

CorporationsFor Good or Evil?

Hist

ory

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

Trans

Natio

nals

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

Trans

Natio

nals

TransNational corporations

now have incomes and values that are the equivalent of some nations Few are headquartered

outside of First World nations

Trans

Natio

nals

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

Trans

Natio

nals

Trans

Natio

nals

Bene

fits

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

Trans

Natio

nals

Bene

fits

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

Trans

Natio

nal s

Draw

back

s

Trans

Natio

nals

Draw

back

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

Trans

Natio

nals

Draw

back

s

Wor

ks C

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