Trends of Transnational Companies

Trends of Transnational CompaniesIn our todays world transnational companies (TNCs) play a crucial role in worldwide economy as they are one of the biggest frugal institutions. In this essay, I will give an explanation of what transnational company actually is, describe the briny trends of TNCs activity and express my own opinion about transnational companies future and compare it with the view of other views.To begin with, let me define the term of transnational company. It is important to give a correct definition of word, because in that location are different categories of companies, doing business in another country, such as multinational and spheric companies. So, TNC is a commercial enterprise with a very complex organization, that operates huge facilities, has a business more than in one country and whose external assets tiptop from 25 to 30 or even more percent of all volume of a company. There are more ways to explain the signification of this term, but we will stop on this one. The history of transnational companies begins in 1118, when the Order of Knights Templars was founded. It was not actually TNC, but some kind of financial centre. In the year of 1135 they started to develop banking industry all over other countries. Officially, East India company is regarded as the very first transnational company, which was completed in 1600. now lets move on to identifying the main trends and role of transnational companies in our contemporary world. They act as a driving force of key processes of modern global economy. TNCs determine structure, dynamics, level of marketability of goods and services, controlling internationalistic capital flows and direct foreign investments. Because of its productive and financial possibilities, transnational companies maintain hold of high-tech industries, advancing scientific growth of this sphere. They are becoming a signifi stackt force in a world economy, as their wide range of functions, starting from indust rial processes and cease up to operations in investment, financial and trade policy, allows them to play a role of international regulator of production and distributor of goods and services. The biggest TNCs have even established supremacy over world trade market and in leading fields of economy. Moreover, transnational companies transform world economy into an international manufacturing, providing boost of scientific advance in all directions quality of goods, efficiency of production, improvement of forms of management and directing enterprises. Number of TNCs is rapidly growing in 1970 there were about 7300 TNCs, full-length turn-round was $626 million a year. At the beginning of 1990s, their amount grew to 37000 with turn-round of $7 billion a year. Finally, in 2012 there are 82000 transnational companies with $30 trillion turn-round.1 such a growth can be explained by bunch of reasons. For example, competition between companies, forcing to decrease charges and at the sam e time increasing scales of producing and introducing new technologies, inquisitive for a cheap labour power and new markets. Importance of TNCs in international meaning is increasing. Core of global economic system consists of about coke transnational companies, which are controlling almost unlimited economic power and capturing two-thirds of international capital flows. Practically all the biggest TNCs, if they will be divided by national implement apply for so called ternary three economic centers of our planet USA, EU and Japan. But for a last few years there is a tendency of less developed countries to develop their own transnational companies all over the world. Sectorial division of TNCs is very diverse 60% of companies constringe in manufacturing sphere, 37% in tertiary sector and only 3% in extractive industry and agriculture. Also, there are 77 million employed slew involved in TNCs sphere worldwide. In my opinion, transnational companies encourage growth of industr y, change structure of national economy and improve position of states in international division of labour and global economic relations. There is misbelief, that as a result of international operations of TNCs, one country will gain a profit and other will lose. In real life it is possible, but there is a huge chance that both countries will be the winners of situation. integrity more advantage of transnational companies is that they speed-up research and development sphere, that is why TNCs have an immense financial resources. Moreover, they mainly control export of manufactured goods, which is usually intemperate by a few large TNCs. Such an export scheme is typical of household and electronic industry, pharmaceutic and chemical goods.However, there are a lot of opponents of transnational companies rule anti-globalists, alter-globalists and ecologic organizations. Anti-globalists, despite of their unfriendliness to globalization, assume that TNCs monopolize national market and destroy state sovereignty. They label actions of transnational companies to occupy local markets as economic war against citizens. In many countries, such as Russia, China and Canada there is a law, restricting actions of TNCs. Alter-globalists are actually not against economic globalization and transnational companies as well, but until they reach a power, which can be compared with power of states. Finally, last but not the least, economic organizations. I can provide you with example Greenpeace. TNCs have so huge productive assets, that they can endanger local ecologic situation. That is why a lot of producing units are beingness transported to Third World countries.Drawing up a conclusion, transnational companies showed their ability to break isolation of national economies, involving them into single process with world economic society. They execute as a source of transferring new technologies, spreading information about new products and as a result, change of social prefer ences occurs.Referenceshttps//www.globalpolicy.org/empire/47068-a-brief-history-of-transnational-corporations.html A brief History of Transnational corporationshttp//moluch.ru/archive/56/7687/http//www.economist.com/blogs/graphicdetail/2012/07/focus-11 http//moluch.ru/archive/56/7687/