A Transnational Corporation Essay Example
A Transnational Corporation Essay Example

A Transnational Corporation Essay Example

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  • Pages: 2 (504 words)
  • Published: January 9, 2018
  • Type: Case Study
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Globalization involves the movement of people, money, resources, ideas, or culture across international borders and the development of international influence by businesses and organizations. The impact that multinational corporations (TNCs) have on their home country and host countries has been scrutinized. There are accusations of workforce exploitation through minimum wage and unfair hours. Economic experts question how some TNCs can account for 25% of global economic activity while only employing 1% of the global workforce. However, TNCs can also have positive impacts on their host countries by providing jobs. For example, The Royal Dutch Shell Group operates in 140 countries and provides around 109,000 jobs with a significant workforce located in Nigeria. This diversity in job opportunities contributes to the Nigerian economy and supports both low-skilled and high-skilled workers. Nevertheless, Shell has faced criticism for its enviro

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nmental practices in Nigeria which include over 4,000 oil spills since 1960 that have contaminated water and food supplies damaged ecosystems and harmed wildlife besides being responsible for significant air pollution through excessive gas flaring.Tyson is an example of a company affecting its country of origin. In 2002, Tyson relocated its manufacturing base from Wiltshire, England to Malaysia, causing controversy in England. The relocation resulted in the loss of over 800 jobs and a lack of consistent income for those affected. Finding alternative employment was challenging as Tyson was one of the few remaining manufacturing plants in England with limited low-skilled job opportunities available. This negatively impacted the local economy and businesses around Wiltshire due to the manufacturing base moving to Malaysia. However, despite these negative consequences, Tyson reportedly reduced production costs by up to 30%, increasing profits whe

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it moved production abroad. Nonetheless, Tyson still had a WHQL in England and incurred higher corporation taxes paid to the UK government leading to a reduction in fiscal efficiency.

Similarly, Nikkei from Beaverton, Oregon based in the USA has over 650,000 manufacturing staff in Indonesia and China without any workers based in America. These workers are paid less than minimum wage while working more hours than legally required resulting in poor treatment and exploitation. Recent industrial accidents have left workers severely injured raising concerns about worker exploitation.
The absence of trade unions in Indonesia permits companies such as Nikkei to exploit their workers without consequences. In fact, Nikkei even goes so far as to threaten termination for any employee who questions their working conditions or compensation. Therefore, the claim that "Despite much criticism, Tents are actually a force for good in the globalized world" is inaccurate. Although Tents provide job opportunities, the detrimental effects on society, economy and environment outweigh any positives. The pollution caused by Tents has both short and long-term implications at local and global levels, while worker exploitation is widespread and hard to address. Economically speaking, Tents benefit their home country more than their host one which undermines the goal of globalization.

This text also features an essay related to examples of multidomestic strategy companies highlighted in bold and underlined with an embedded hyperlink. Additionally, it contains along with alignment codes justified within the text.

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