The Growth of Transnational Corporations and Its Impact on...

The Growth of Transnational Corporations and Its Impact on Countries Around the World A TNC is a company that operates in no less than two countries. An example of this is Nokia a mobile phone company who are based in Finland but also have manufacturing plants in Hungary and Bulgaria. The also make some handsets in Mexico. TNCs have increased rapidly over the last 30 years or so; this may be due to a number of reasons. Governments in NIC (newly industrialized countries) have tried to lure TNC to their countries. One way they have done this is by keeping the land prices artificially low; this is so the TNC can build factories and other building for less money. They also have a relaxed attitude†¦show more content†¦Most of the mother countries of TNCS are MEDCS such as USA, Japan and Western European nations and they tend to locate in the Asian tigers (countries such as Vietnam Thailand and s. Korea) the presence on TNCs in these countries has had a positive effect on the NICs and its population. The most workers are paid the same as professional workers in those countries (in Vietnam the workers in one of the factories Nike sub-contracts to are paid the same as the teachers.) this shows that compared to MEDC standards they are paid much less but for their home nation they receive much more t han they would have made if they had stayed in their jobs they had before the factories came (most would have been farm workers or in other primary employment. The case is the same in all TNC and an example of this can be seen in S. Korea, in 1951 they had the same GNP as a sub-Saharan country such as Kenya. But since TNCs have moved in the average wealth is at the same level as Spains. 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