Theoretical debates on the emergence of TNCs in the world economy.

The origins of TNCs are as contested and controversial as the globalization debate. Scholars like
Karl Moore and David Lewis trace Multinational Enterprises (MNEs) “stretching as far back as
Ashur…to the age of Augustus” (Chandler and Mazlish 2005, 3). Chandler and Mazlish argue
that MNCs “change over time” and do “have a history”. TNCs have become very important in
the present international politics. Its almost impossible for the international politics to survive
without the issue of TNCs. There are various theoretical debate on TNC.

Liberal Perspective.

Besides other liberal principles one pertinent principle is their advocacy of “a global free-trade
regime in accordance with the idea that free-trade brings benefits to all participants” (Dunne
2008, 116). The neoliberals believe that globalization is a positive force that needs to be
enhanced. They believe that it will promote economic growth thus benefiting all states. Thus
they prefer that states should intervene less, and if at all intervenes then it “should intervene to
promote capitalism with a human face or a market that is more sensitive to the needs and
interests of all the people” (Lamy 2008, 137).

Liberal scholars recognize the market mechanisms to be mostly positive. Raymond Vernon and
John Dunning are the most acclaimed liberals’ theoreticians. Vernon through the Product cycle
method explains the expansion of American business overseas. He argues how companies having
technological advantages are able to expand overseas. Dunning through the “ownership, location,
internalization model focuses on the decision to invest abroad with emphasis on ownership
characteristics, and the desirability of the foreign location” (O’Brien and Williams 2004, 172)