Transnational Corporations Essay Example | Topics and Well Written Essays - 3000 words

Transnational Corporations - Essay Example Basically, TNCs' aggregate yearly sales would correspond to or are greater than the annual gross domestic product (GDP) of most countries. A classic example would be Itochu Corporation's sales which exceed the gross domestic product of Austria, while those of Royal Dutch/Shell run parallel with Iran's GDP. Together, the sales of Mitsui and General Motors are greater than the GDPs of Denmark, Portugal, and Turkey combined, and US$50 billion more than all the GDPs of the countries in sub-Saharan Africa (UNCTAD 1994). Because of their considerable size, TNCs are likely to control and dictate in industries where output and markets are oligopolistic, or converged in the hands of a comparatively small number of firms. The top five car and truck manufacturers are responsible for nearly 60% of motor vehicles' global revenues. The five leading oil companies account for over 40% of the industry's world market share (The Economist 1993). TNCs' operations cover the whole world; however, they are based for the most part in Western Europe, North America, and Japan. The Swiss electrical engineering giant ABB has facilities in 140 nations, while Royal Dutch/Shell digs up for oil in 50 countries, conducts refining activities in 34 homelands, and markets its products in 100 nation states. Offices of the US food processing firm H.J. Heinz cover six continents and Cargill, the US's largest grain company operates in 54 countries. Britain's major chemical firm ICI has manufacturing operations in 40 nations and sales affiliates in 150 countries (Hoover 1993). The term transnational corporation means a "for-profit enterprise" which is explicitly identified by two salient features -- 1) engages in enough business activities -- including sales, distribution, extraction, manufacturing, and research and development -- outside the country of origin so that it is dependent financially on operations in two or more countries; 2) management decisions are made based on regional or global alternatives (Hadari 1973). In essence, transnational corporations are recognised as prime components of capitalism and a most important conduit of globalisation. Globalisation, TNCs and Host Governments In this age of frenetic globalisation, the transnational corporation is indisputably the free markets' first-class and "untouchable" agent. Economically, these corporate giants dwarf the resources of many developing countries and evidently such status can be attributed to its extraordinary capacity and swift faculty to create wealth. Dubious however, is its reputation as an economic distributor, as a democratic contributor, and as a supporter of human rights in general (Letnes and Westveld 2004). These issues are specifically debatable in developing countries where some view the transnational corporation as a vehicle of development while others see it as nothing but a neo-colonial tool of exploitation. Interaction is Motive-Dependent In the face of contradictory motivations and intentions and the fact that TNCs overshadow many of the smaller economies in bargaining power (Evans 1985, 216-21; Walters and Blake 1992, 124), TNCs engage in positive dialogues with host countries economic and social conditions (especially in the sphere of human rights) -- out of either a genuine sense of social responsibility or out of respect for the market force of the spotlight phenomenon

American Dream Research Paper Example | Topics and Well Written Essays - 1500 words

American Dream - Research Paper Example In Europe, this concept of freedom in pursuing one’s dreams could not be fruitful because of the class divisions. America being a classless society can adopt this concept of American Dream with much freedom. But, to achieve something according to one’s abilities and to gain respect irrespective of his status in society, one has to get rid of his selfish desires and should not indulge in â€Å"physical comfort and cheap amusement† (Schnell, 2010, p.3). Achieving American Dream To achieve a successful life is the fundamental concept of American Dream. Generally, the idea of American Dream is to get high income through a secured job and financial security. Financial success is just one part of American Dream. People also tend to achieve social status by getting membership in social clubs or by achieving the peak of one’s chosen career. Success also means attaining a position in the society where one can have the right to speak his mind, do whatever he wants to do and create a world which will be worth living for everyone. The way of achieving success can also lead to conflict in American families where children can forego the wealth and social status of their parents for the want of accomplishing more meaningful goals in life. The goal of American Dream is not to achieve millions of dollars, but for general people the focus is on attaining enough wealth to lead a decent life with dignity and self respect (Hochschild, 1996, pp.15-16). The concept of s uccess can also be relative in nature. A person may want to lead a better life compared to his own childhood days or his neighbors, a character from a book or movie or to another gender or race. There is also a competitive nature of success wherein a person can become successful only when another person faces failure like in competitive events like beauty pageants. Most Americans feel that the future generation of their nationality can live a better standard of living and can achieve success in attaining their goals in life. In America there are many opportunities for everyone who is ready to work hard to achieve success. One definition of success can be wealth. Although money cannot buy happiness, it can nevertheless buy the things necessary to live a comfortable life (Hochschild, 1996, pp.16-19). Obstacles in achieving American Dreams Many Americans believe that it is difficult to achieve the goals that they set in their own lives. This is because they say that there is no securit y in their financial status and also there is lack of proper infrastructure for public education. They feel that the government who claims to help the people of the nation is actually a hindrance in the path of their achieving dreams. The African-Americans believe that the existing racial discrimination can make it difficult for them to pursue their dreams. Almost 72% of Americans believe that the government must strive to help the people in achieving their dreams of a comfortable and respectful life (Longley, 2004). In America there are various public policy tools which aim at giving the children of poor parents a chance to earn high income. Such policy tools along with the nation’s economic system are not achieving the desired results. The laws to deal with racial discrimination also do not prove to be fruitful in most cases. There are several social and economic obstacles in achieving American Dreams. The children of poor families attend inferior schools and get poor educa tion. The children from rich families inherit more wealth and this gives them an added advantage. It is important for the future genera