Discuss the Role and Impacts of Transnational Corporations in the Global Economy (40 Marks) 

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Discuss the Role and Impacts of Transnational Corporations in the Global Economy (40 marks)
Transnational Corporations (TNCs) are companies which are able to co-ordinate and control its production, in more than one country during economic globalisation, examples of which include Nike, McDonalds and IKEA. These companies use differences between a country’s cost of production, natural resources, labour and state incentives to their advantage. This allows them to spread their resources and production between locations globally to minimise cost to the company. In recent decades the increasing wealth of TNCs has led to more dominated roles in the global affairs this has many impacts on the economy, global population and environment both positively and negatively.
Transnational corporations have a very large role to play in the global economy. With the economies of developing countries, such as China and Brazil, generally growing due to the exchange of information and goods (globalisation) companies are keener to invest in them to increase their turnovers and overall development. TNCs have globally increased new job opportunities and new tax revenues even for the poorest of countries, by doing so they have contributed in reducing the levels of world poverty and have improved infrastructure for developing countries. TNCs are also incredibly wealthy. Ford and General Motors are two companies which exemplify the wealth of TNCs. Their combined annual income is equal to the GDP of all the countries of sub-Saharan Africa, such as Chad, Sudan and Zimbabwe. This is very influential in the globally economy it shows the massive contribution that TNCs bring. Political ties may also be made through the actions of TNCs as countries have to share information and trade this is also another major role that TNCs perform.
The manufacturing and exportation of products between the…...

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