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Pros And Cons Of Transnational Corporations

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Transnational Corporations

One of the most notable things on the advancement of economic liberalism and free market is the formation of transnational corporation. Consistent with the liberal framework on absolute gains in trade for all parties, TNCs typically argue that everybody benefits from the global trade and investments they are engaged in. In the context of globalization, many countries including those of the developing world, now welcome TNCs. However, we also know that TNC activities have raised new problems and concerns such as the lack of technology and skills transfer, damage on the environment, and their ability to influence and manipulate political issues and practices in the countries where they operate. This does not mean, however, that the recipient …show more content…

Cases related to employment issues on labor costs are mostly reported. Apparel industry such as Liz Claiborne whose jackets cost $178 only paid their workers $0.74 per jacket. In China, laborers which may include both under and over aged citizens are working for comparatively minuscule pay in inhumane factory conditions. Oftentimes, the TNCs sub-contract their manufacturing operations in countries such as China to local companies or from other countries (such as Korea or Taiwan) and they then argue that labor relations and conditions are no longer their direct responsibility. In addition, global health issues caused by some of the products of TNCs are significantly noted. Well-known examples include Nestlé’s infant formula milk which caused the death of an estimated 1.5 million children during the 80's and an increased number of cancer patients resulted from the influence of Tobacco industries’ on almost 1.3 billion smokers in developing countries. Moreover, Chevron and Coca-Cola were included in the list of companies accused of violent killings of workers and union officials in attempts to suppress

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