A Transnational Corporation

Topics: Economics, Royal Dutch Shell, Employment Pages: 3 (948 words) Published: April 24, 2014
“Despite much criticism, TNCs are actually a force for good in the globalised world.” Using examples; to what extent do you agree with this view? (40 marks)

A Transnational Corporation (TNC) is a company which operates in more than one country. We refer to the country in which the company was started as the ‘home country’, and any other country that it is operating in as a ‘host country’. Globalisation can be described as the movement of people, money, resources, ideas, or culture across international borders; but can also be described as the process by which businesses or other organizations develop international influence or start operating on an international scale. TNCs have both positive impacts and negative impacts, on both the home country and the host country; but are they responsible for helping or hindering these nations? The ways in which TNCs operate have been under much scrutiny for many years. They have been accused of exploiting their workforce by offering minimum wage or less, and by forcing them to work unfair and ridiculous hours. TNCs have also been subject to much wider economic scrutiny. There are approximately 6000 TNCs across the world, and the top 200 are accountable for 25% of the world’s economic activity, but yet only employ 1% of the global workforce. Economic experts have queried how this is possible, and many of the answers point towards exploitation, along with unfair and sometimes unlawful dealings. TNCs have positive impacts on their host countries; one of these impacts is the number of jobs they provide. One TNC which does this is The Royal Dutch Shell Group (Shell). Shell is an Anglo-Dutch TNC involved in energy production- primarily petroleum. Shell operates in 140 countries, and provides around 109,000 jobs. One of its larger workforces is located in Nigeria. Shell provides jobs in the Nigerian economy in various sectors, ranging from construction to research, and transport to surveying. This wide range of employment...
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