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Transnational Corporation

In: Business and Management

Submitted By YMenjie
Words 1718
Pages 7
Introduction
The statement of the question is sometimes true but not always. Definitely, Transnational corporations(TNCs) have brought in both problems and benefits to the local communities, as TNC requires resources and communities need economy developments. However, I would not agree that they had always brought in more problems than benefits to the local communities in which they invest.

TNCs were involved in local communities development for long history, they had made huge contribution during the period. The problems happened at the local communities in which the TNCs invest are not responsibilities of TNC only, the local government bodies like governments, legal systems, financial institutions, and etc are also partially responsible for problems of local communities. Whenever corruption, breaches to human rights and laws happen, local governments and other local business entities are normally also involved. Generally speaking, I would agree that some TNCs may have brought in more problems than benefits to the local communities, however, most of responsible TNCs who seek for win-win results of the business operations have brought in more benefits than problems to the local communities.

The Extent to Which the Statement is True
Th problems brought over to the local communities around the world normally involve the natural environment pollution, increased gap between poverty and rich, cultural inflicts, and etc. As TNC take advantage o their advanced Technology and management power, they took resources and money, left behind a mess of ruined environment and increased conflicts between social classes. As a matter of fact, if we take a deep look into the history of Global business development history, we would find many historical facts about how TNC slowed down the national developments of third world countries. For instance, due to unscrupulous and…...

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