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Essay / Research Paper Abstract
This 16 page paper considers the impact that transnational companies will have on the less developed nations in which they trade. The writer argues that the short term influence of increased income may be seen as secondary to the long term impact of the transfer of knowledge. Many examples are used and the case of China is cited as an example where knowledge is more important that foreign currency. The bibliography cites 8 sources.
Page Count:
16 pages (~225 words per page)
File: TS14_TEtransn.rtf
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Unformatted sample text from the term paper:
a result of the advantages they perceive. The most basic of these is increased profit. This may be due to the ability to access new markets, or the way in
which they may be able to increase profits by reducing costs of production. If we consider the way that this practice can be seen to occur then we will
also appreciate that the impact any transnational company will have on a country will be dependant on the development status of the country. The less developed countries are less powerful
in economic terms, and as a result the companies that invest in their economies may be seen as holding a disproportionate level of power, creating an uneven relationship in the
economy between government and commerce. We may argue that this results in the transfer of culture and the subservient position of many
countries that are developing and need the income that is brought in by transnational companies setting up in their economies. If we
wish to understand the nature of the commercial trading of transnational companies and how they are able to gain a commercial advantage by seeking to undertake trade in poorer or
less developed countries then we can look at international trade theory and apply this to the way both side benefit, but not in an even handed manner, with the less
developed nations seeing the gap between the develop and undeveloped world increase as a result of these practices. Despite this the trade still continues, and as such we must argue
there is more than the short term economic need for hard currency that is the motivational factors for the less developed countries to continue to seek the investment. Here we
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