Nobody downloaded yet

Impacts of TNCS on Host Economy - Essay Example

Comments (0) Cite this document
Summary
Running head: IMPACTS OF TNCS ON HOST ECONOMY Was the Takeover of Cadbury By Kraft in 2010 Good News for the UK Economy? Insert Name Insert Grade Course Insert 22 March 2012 Was the Takeover of Cadbury by Kraft in 2010 Good News for the UK Economy?…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.6% of users find it useful
Impacts of TNCS on Host Economy
Read TextPreview

Extract of sample "Impacts of TNCS on Host Economy"

Download file to see previous pages The current concept of trans-border business operations began to intensify after the Second World War, even though such business operations have been in existence for some centuries (Ietto-Gillies, 2012, p.7). The wide coverage of these organizations cutting across cultures make them have positive and negative impacts on, and become a point of concern for, their employees, the competitors, the domestic customers, the host government, alongside the other international organizations that may operate in the country (Sat, 2009, p.41; Fuller, n.d). The effects realized will be determined by the nature of operations by the TNCs. This paper focuses on the economic impacts that the foreign direct investments established by the transnational corporations have on the economy of the host nations. It examines how the workers, the suppliers, the domestic competing organizations, and the host communities are affected by the operations of a transnational corporation within a given country. Particular attention is given to the effect that acquisition of Cadbury by Kraft had on the economy of the United Kingdom. The Positive Contributions of TNCs to the Host Country’s Economy The operations of transnational corporations have certain positive impacts on the economy of the host nations. One of the benefits of TNC is transfer of technology into the host economy (Berger & Diez, 2008). The transnational corporations often get into a given country through different entry modes such as exporting, joint ventures with the domestic firms, foreign direct investments, or licensing among many others (Rugman, 1996, p.29). They develop various linkages that form the basis for technology spillover (Berger & Diez, 2008). The local employees will get to learn the modern technologies that the TNCs apply in their production operations. The learnt technologies can than be transferred to the domestic companies when these employees move on to take employments with the domestic firms. In this way, the technology shall have been transferred into the economy of the host nation at a relatively lower cost than other methods of acquisition such as buying the technology from the developers or domestic development of the technology. Similarly, the transnational corporations can acquire or enter into joint ventures with domestic firms. The transnational corporations have better responses to organizational changes. The organizations work in different cultural, institutional, and regulatory environments and they are forced to modify their organizational structures continuously (Lowe & Wrigley, 2010, p.382). The management approaches may be copied by local managers (Berger & Diez, 2008, p.1049) who would transfer the techniques to the management of other organizations if their tenure with the TNC comes to a halt. A manager who has worked for a significantly long period for some TNC may develop new ideas (owing to the research and development carried out by the TNCs) to go ahead and establish his or her new investment scheme. The transnational corporations producing goods locally may help reduce the imports to a given country if the domestic customers are attracted to their products in preference to the alternative imports (Fuller, n.d). The goods made locally by the TNCs are likely to be cheaper since other costs like shipment and duties have been reduced considerably. On a similar perspective, the TNCs can help increase the export from a given economy if the TNC exports ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Impacts of TNCS on Host Economy Essay Example | Topics and Well Written Essays - 1500 words”, n.d.)
Impacts of TNCS on Host Economy Essay Example | Topics and Well Written Essays - 1500 words. Retrieved from https://studentshare.org/business/1445837-governing-global
(Impacts of TNCS on Host Economy Essay Example | Topics and Well Written Essays - 1500 Words)
Impacts of TNCS on Host Economy Essay Example | Topics and Well Written Essays - 1500 Words. https://studentshare.org/business/1445837-governing-global.
“Impacts of TNCS on Host Economy Essay Example | Topics and Well Written Essays - 1500 Words”, n.d. https://studentshare.org/business/1445837-governing-global.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Impacts of TNCS on Host Economy

The impacts of foreign direct investment on host country economies

...?Using examples and case studies discuss and evaluate the impacts of foreign direct investment on host country economies Introduction The liberalization of markets worldwide, an effect of globalisation, has led to the elimination of the barriers for developing investment activities abroad, i.e. to a country different from the country of residence of the investor. Gradually, the foreign direct investment, or else the FDI, as this activity has been characterized, see also the next section, has become a common phenomenon in countries worldwide. It should be noted that the FDI has been related to a series of important benefits but it has been also found to have a series of disadvantages/...
11 Pages(2750 words)Essay

Dynamic Host Configuration Protocol

... Dynamic host configuration protocol (DHCP) Definition This is defined as a networking /client server protocol that enables client machines be assigned IP addresses automatically by the server from a given range of addresses in the given network. Traditionally, all the TCP/IP parameters were configured manually which is commonly referred to as static configuration. Every machine required an IP address, subnet mask and a default gateway be inputted manually. If one of the values was wrongly entered, it disrupted the communication and it was hard to quickly establish the cause. Advantages/ Benefits of DHCP 1. minimized IP Address configuration errors as is attributed with the manual IP address configurations to computers 2. Network... Dynamic...
8 Pages(2000 words)Term Paper

Large TNCs are merely instrumental

.... Traditionally economics measures the society’s well being through GDP however, it also ignores the personal and social well beings of the individuals. The alternative views however do suggest that economies rather than serving the consumers are actually serving the large corporations. Corporations are not just the entities which fulfill the needs of the consumers but rather the wants of the consumers are created by the corporations so that they can profit from them. By limiting the brands available to the public, corporations however limit the choices available to the consumers hence forcing them to consume their products. This paper will basically argue and debate two opposing views of whether consumers are in control...
6 Pages(1500 words)Essay

Positive Impacts of London Olympics to UK Economy

...? Positive Impacts of London Olympics to UK Economy October 27 The Olympics are known to be one of the largest sporting activities globally, which means that the games bring with them significant economic impacts to the host country. This is in relation to the economy and infrastructure, as well as labour and the people where the games are expected to have benefited the UK. The impact of the Olympic Games to United Kingdom will ever be felt and seen even after the games ended in relation to economic advancements, developments and features, which include unmatched infrastructure and other economic impacts. From the economic standpoint of the United Kingdom, it has benefited tones following the Olympics being held in the country... , other...
4 Pages(1000 words)Essay

Dynamic Host Configuration Protocol

...? DYNAMIC HOST CONFIGURATION PROTOCOL (Internet and Network Engineering) of (affiliation) Introduction Therehas been so much scientific and technological advances in the last few decades as compared to the progress achieved by humans in the last few centuries and millennia. This great leap in knowledge started more or less during the Industrial Revolution and has been accelerated ever since, resulting in an explosion of data, information, knowledge and wisdom. One of the most transformative technological invention or innovation has been the development of Internet, originally a secret project of the United States government under its Advanced Research Projects Agency (ARPANET) for military purposes to secure its...
10 Pages(2500 words)Research Paper

Impacts of Volunteer Tourism on Host Communities

...in Benson 2010, p. 182). Therefore, experience is also an important factor function in collaboration with the situation and real demands of the community. Such ignorant and disqualified faculties would never bring any benefits to the host community rather than inviting tragedies and further issues. Evidently, an experienced person can make a better contribution than the other having little knowledge regarding the activities. Hence, undertaking such projects with such fresh groups can have negative impact on the host community. In the conclusion, volunteer tourism remains as an exciting concept. A stable and strong economy can be formed by volunteer tourism. Laying...
4 Pages(1000 words)Essay

Host family

...Host families play a very important role for those individuals who happen to be on exchange and these often help in the adjustment of foreign exchange students to the life in a new environment. While this is the case, it is also important to note that host families often make a lasting impression on a foreign student that is visiting a certain country. I was privileged to have gone on exchange to the United States when I was younger and this period in my life has had a lasting impression. The impression that I got from visiting the United States and being in a new environment is one that was completely different from what I had expected. This was mainly due to the fact that most of the interactions that...
5 Pages(1250 words)Essay

Impacts of ecotourism on host communities in Kenya and Zanzibar

...? Impacts of ecotourism on host communities in Kenya and Zanzibar Insert Insert Introduction For many east African countries, tourism plays an important role in overall economic development of these countries. Tourism has both negative and positive effects on these countries. Ecotourism is a relatively new component of sustainable tourism. Ecotourism has the ability to reduce the negative effects of conventional forms of tourism while at the same time improve the positive impacts of tourism. Ecotourism therefore, aims at minimizing the effects of tourism on the environment. It is therefore important to understand the effects of ecotourism on the host communities. The...
2 Pages(500 words)Case Study

Host resistance and immunity

...AGENTS OF INFECTIOUS DISEASES al Affiliation) Introduction Biological agents such as parasites and viruses cause infectious diseases. Microbes invade host organisms and lead to disease infections. Pathogens are microbes that cause these diseases. Bacteria and viruses are the most common pathogens that cause diseases. These microbes cause diseases by either stimulating the immune system of the host body to mount a defense reaction or interrupting an essential body process. Immune responses against the microbes are often more destructive than the direct damage caused by the microbe. The damages include inflammation and high fever. A detrimental colonization of the pathogen in the host body...
2 Pages(500 words)Essay

Host resistance and immunity

...Topic:  Host resistance and Immunity Discuss the differences and similarities in the role thateach microorganism fulfills in their ecological niche. Introduction Ecological niche Definition: An ecological niche refers to how a population or an organism reacts to the allocation of resources. This also includes those competing for resources, for instance, by growing when resources are plentiful, and when predators, parasites and pathogens are inadequate. Additionally, it comprises how it in turn changes those factors like restraining access to resources by other organisms, act as a source of food for predators and a consumer of prey (Berg, 2008). Comparison and contrast of the roles of E-coli and Mycobacterium Tuberculosis... in their...
2 Pages(500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Impacts of TNCS on Host Economy for FREE!

Contact Us