Get Full Essay Get access to this section to get all help you need with your essay and educational issues. There is no doubt that nowadays TNCs are really important actors in the global economy, independent from the states within where they located.
Get Full Essay Get access to this section to get all help you need with your essay and educational issues. This essay will aim to the highlight and explain the situation in which nation states are continually being reformed by these TNCs.
The evolution of technology has sped up the gradual increase in globalisation. As companies build better communication channels, more information can be sent around the world to more remote locations allowing corporations to reach wider markets.
Newer and faster modes of transport have allowed more goods and services to be exported around the world, again allowing corporations to reach a wider scope of the world. An example of a transnational corporation using an integrated strategy would be IBM which operates in over countries.
For example, they now have only one supply chain for the entire corporation instead of having many different supply chains in each country it operates in.
This brings about efficiency as they can produce the best product at the best prices due to location economies. Palmisano, The primary objective of a standard corporation is to maximise profit and shareholder value. This is done by the widening the margin between total revenue and total cost.
Total cost can be cut by reducing the cost of materials, labour and capital or by finding better quality forms of these resources. Lauletta, Nation states have specific objectives.
The nation state has a few tools which it uses to alter the liveliness of the economy. Some countries are more successful than others at implementing these policies.
Ghana finds it very difficult to implement its fiscal policy as it does not have an appropriate infrastructure for income tax analysis and collection. This means the policy will be less effective.
Nation states must also aim to provide public goods which cannot be provided or allocated fairly through the market mechanism.
These include physical and human infrastructure such as roads, airports, harbours and education, laws and regulations. Those are the performance goals of the state. Other objectives include locally rooted technology, to maintain indigenous headquarters and to attract and retain business from TNCs.
They will also aim to gain a fair level of taxes from TNCs whilst still keeping them in the country and developing a highly skilled, higly earninging and flexible labour force.
However to the analytical individual, this quote would be seen as misleading as this only paints a quantitative picture rather than a qualitative one. Also, the measure of GDP does not exhibit the total revenue a country makes; it merely shows the value added to the economy therefore the initial quote definitely paints a misleading picture.
This makes me realise that the nation state and TNCs are not necessarily in competition for power, they both have different roles to play and require each other to play those roles effectively to create a good balance for effective business. Nation states and TNCs clearly need each other.
The state needs the corporations to create wealth and bring jobs for the citizens. The state will aim to attract the corporation by offering various incentives such as tax breaks, good infrastructure and cheap debt. TNCs also need the state as the state provides public goods such as an infrastructure on which the TNC can operate comfortably.
This can be in the form of roads, the emergency services, protection, an operational labour force and real estate land.The Nation State Is Dead Essay Sample Introduction The inevitable growth of globalisation over the past few decades has gradually created the occurrence we .
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Nation State & TNCs Essay Sample. Under the trend of economic globalization, transnational corporations (TNCs) are becoming more and more influential. There is no doubt that nowadays TNCs are really important actors in the global economy, independent from the states within where they located.
‘The Nation State is dead, long live the TNC’. Critically assess the changing relationships between TNC’s and nation states. Introduction The inevitable growth of globalisation over the past few decades has gradually created the occurrence we now know as the “Trans-national Corporation (TNCs)”.
Comparing a Nation and a State Essay Words | 5 Pages Comparing a Nation and a State The world is organized by man-made boundaries that divide land into sovereign states, (excluding Antarctica).
A nation state is connected in terms of its nationality, social and cultural aspects and a strongly organized political system that works in best interest of the nation.
The role of the nation state has changed considerably in the era of globalization. (“Critically assess the changing relationships between TNCs and nation Essay - 1”, n.d.).