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Transnational Corporations


The increase of multi-national corporations' is rapid and they are becoming richer. .
             Transnational corporations employ millions of people all over the world. For example corporate General Motors (Holden) employs 709,000 people. In terms relative to their business activities transnational employ very few but in real terms they provide jobs for a great many. They have a huge influence on political, environmental and social issues of the world today, be they beneficial of not and they continue to grow and grow.
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             There is also a concern that third world countries will lose cultural identity by increased exposure to foreign influences - TNCs. There are market opportunities for transnational corporations in third world countries including many Asian nations. Mac Donalds have opened chains in Asia and.
             Africa and would have not succeeded except for the Americanisation of the eating habits of these areas. Multi-nationals can exploit these new areas of opportunity.
             TNCs also strengthen the economy of countries including Singapore, which has become a highly prosperous country as it encourages TNCs to locate in their country. TNCs have also opened up opportunities for business and trade for example they will buy land from a country to build their factory. These large corporations have high total incomes that will stimulate a country's economy. Also large transnational spread their international operations. There is an immense growth in services and international financial dealings. Reductions in trade barriers are increasing in many areas. .
             Nike is an example of a transnational corporation as it manufactures and sells its products in many countries around the world. It has many impacts on Australia and the Asia Pacific region. Nike sells products in over 300 countries in the world. Nike has branch offices all over the world and produces much of its output in low wage countries such as Indonesia using contract labour.


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