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What is a Transnational Corporation?
Transnational organization is a term used in scholarly literature. It refers to international organizations that "transcend" the idea of a nation-state. By ignoring differences between nations, it operates on a truly global level.
Multinational Corporations
A corporation that has its facilities and other assets in at least one country other than its home country. Such companies have offices and/or factories in different countries and usually have a centralized head office where they co-ordinate global management. Very large multinationals have budgets that exceed those of many small countries.
Corporations have low social and environmental standards.
New socially and environmentally conscious pressure on corporations UN, Foreign Corrupt Practices Act, Generalized System of Preferences, NAFTA and Labor Organization.
Triangulation: inability of governments to prevent indirect trade from one country to another
State loses power in trade agreements
Inability to control financial system
Extraterritoriality: occurs when one government tried to exercise legal authority in the territory of another state
Social and environmental issues
Intra-firm Trading: international trade from one branch of transnational company to an affiliate of the same company in a different country.
TNC's avoiding Government Policies
change transfer prices: the price set by a transnational company for intra-firm trade of goods or services
regulatory arbitrage: the process of moving funds or business activity from one country to another, in order to increase profits is escaping the constraints imposed by government regulations
Economic Foothold
Labor Surplus in 3rd World Countries
-Al Qaeda
-Hezbollah
-Al Shebab
In conclusion, transnational actors and international organizations have a very strong influence in a globalized world.
Include UN, NATO, European Union.
Include Amnesty International, Red Cross,
Unicef