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TNCs Interaction with Governments - Research Proposal Example

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This paper "TNC’s Interaction with Governments" discusses Transnational Corporations that are becoming a major force in the worldwide economic structure. With such a position of size and a multicultural corporate, this situation raises an issue to the political complexion of such organizations. …
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TNCs Interaction with Governments
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Download file to see previous pages We also discovered cases where such cooperation was with governments that were involved with issues that a civilized world would not countenance, such as human rights. In the majority of cases though, we discovered that TNC’s were more likely to actively use their influence to persuade or even reverse government policies.
How do Transnational Corporations co-operate and interact with the governments of the countries where they have a business presence? With the rapid growth of the numbers of such corporations and their impact on the global labor and financial markets, this is becoming one of the key issues of the twenty-first century, both for politicians and increasingly the general public as well. However, informed observers are beginning to turn the question around and asking how are governments cooperating with TNC’s?
Transnational Corporations are corporate businesses. What sets them apart from others is that they have achieved a major presence in a number of different countries. This has usually been developed by means of global business purchases or mergers. Such organizations also tend to have a global presence in terms of their production or other facilities spread over a number of different nation locations as well. Although international trade has been around for centuries, its most dramatic phase began in the 1970s, coinciding with the dawn of the information technology era. Since then the quest for international trade and growth has become the norm. Since then the growth of TNC’s, and their power and size, has continued unabated. 

In fact, in a survey conducted by the ‘The World Bank’, in which they listed the world’s top one hundred economies for 2005, the following four TNC’s came within the first twenty-five top economies listed.
This places such organisations in front of a large number of the world’s smaller economies in terms of total revenue, in fact the revenue of well over one hundred national economies .  ...Download file to see next pages Read More
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