Tnc Good Or Bad

767 Words4 Pages
Transnational corporation have become some of the most powerful economic entities in the world today, account mostly of the world trade. They own or control production facilities in more than 1 country through direct investment. They have HQ in their country of origin and manufacture their products in LEDCs. They exploit wages, labours there, saving company money. Exploit means to make use of selfishly or unethically. So can we say the transnational corporations benefit nations and their citizens? In this essay, I will discuss the good and bad side of TNCs. TNCs do business thus they have to minimize their cost and maximize their profit. They think of many ways to do this, but a very common method is employing many workers in LEDCs.Like Nike had established lots of garment factories in Indonesia, Vietnam. On one hand, this is a good thing because they bring jobs to places which there is high rate of unemployment, teach workers new skills, and bring money to the host country in the form of taxes to the government or by beginning to integrate the country into global market. By this, the host countries can increase their GDP, becoming more developed. When TNCs establish their factories in a certain area and employ workers, they provide residences, health care and extra training. This helps local people to have a better life, some of them don’t have enough money to look after their health. Also, many TNCs provide higher wages and safer working conditions than local firms. If TNCs stay in the country in a long period of time, they usually bring political benefits, improve relationship between the government in the host country with the country of origin. Like Sony, it had improved the international relation between Uk and Japan. Sony sells a lot of product in Uk. As I mentioned before, TNCs try to reduce their cost as much as they can, increase their profit by
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