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Words: | Submitted: Thu Jul 11 2002
... wield far too much economic, political and social power, that they may carelessly exploit workers and that they introduce values and desires that, in non-western countries in particular have harmful and moral effects. Growth of TNCs has occurred because global markets exist for many products and services and those organisations with sufficient capital and expertise have establishes branches in new countries. They usually establish overseas markets in order to gain: access to new markets in which they might see a profitable; extend any existing markets to match competitors; provide platforms for exports as they may find it cheaper to go to the customers instead of paying large delivery cost or to attract customers as they will also save costs, e.g. Japanese electronic and automotive industry. By actually doing this they will avoid trade barriers and be able increase sales in foreign countries; products will be more diversified; costs of production ...
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