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To be able to discuss the above questions it is necessary to understand what is meant by transnational corporations TNCs TNCs are generally characterised as a company that have modes of operation in two or more countries across the globe Dicken 1992 gave a more definitive characterization TNCs maximise the comparative advantage between countries profiting from the differences in factor endowments wage rates market conditions and the political and fiscal regimes On a more basic level this means that TNCs tend to operate within countries where there are little restrictions on working conditions subsequently profits can be maximised through low wages and not having to provide the benefits that some countries see as basic TNCs have a propensity to operate in countries that are flexible enough to be able to move their businesses elsewhere on a global scale Transnational corporations normally operate at a high level that the global economic and social effect that they can have upon a country is enormously substantial a fact to bear in mind is that the 50 largest TNCs have a larger economic value than the gross domestic product GDP of the 130 poorest states TNCs employ in excess of 6 million people worldwide and own 20 of foreign assets and have total foreign sales in excess of 2 trillion us dollars These figure give a good understanding of how important TNCs are in todays society and the impact that TNCs have on globalisation Good examples of TNCs are General motors Ford BP and Microsoft These large companies also have a tendency to have more than one line of business for example Enron formerly one of the worlds largest TNCs until it collapsed last year markets electricity and natural gas delivers energy and other physical commodities and provides financial and risk management services to customers around the world TNCs are easy to demonise in modern society and it is simple to point out all the
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