Globalization- Transnational organizations

Caribbean Studies
Globalization

Globalization entails the increased connectivity and interdependence of the world

economy. It is the process by which ideas, knowledge, information, goods and
services spread around the world. Globalization has opened access to markets all
around the world so that it truly has become ‘a single market place’. Globalization has
been driven by many factors such as
1) Reduction of transportation costs
2) Technological advancement
3) Trade liberalization
Transnational organizations

Transnational organizations are enterprises that are involved with the

international production of goods or services, foreign investments, or income and
asset management in more than one country. It sets up factories in developing
countries as land and labor are cheaper there.
Examples of TNC’s are Apple, Samsung, Nestle, Nike, Sony, Amazon, etc.
Transnational organizations

TNCs are a key driver of globalisation because they have been relocating
manufacturing to countries with relatively lower unit labour costs in order to increase
profits and returns for shareholders. When a Tnc locates within a country there
advantages in the host country such as the creation of jobs, investment in
infrastructure, new roads, increased income, improved education and skills ,a better
developed economic base for the country.
TNCs are collectively the world's most powerful economic force, but no
intergovernmental organisation is charged with regulating their behaviour. This
naturally favours the developed world and inhibits developing countries' development.