Transnational & Multinational Corporations in the Global Economy

Book excerpt: This book (1st edition published in June 2020) examines the factors behind the growth of transnational corporations (TNCs) and multinational corporations (MNCs), and how they have become a major force in the increasing interdependence of national economies through their role in international trade, investment and capital. TNCs & MNCs have undoubtedly become key players in the process of globalisation, and vital to the economic development of emerging economies during recent decades. Yet, the geography of their ownership is also changing. The domination of the USA and Europe, as home to the world's largest companies is being challenged by the emergence of powerful corporations from the newly industrialised countries of Asia, particularly South Korea, India and China.The activities of TNCs & MNCs inevitably lead to significant economic, social and environmental consequences for their host countries, as well as on their own country of origin. Both positive and negative impacts are assessed, while case studies of Apple, BP and Dyson provide additional detailed examination of the characteristics, spatial organisation, growth and impacts of three global corporations. Although they differ in their history and geographical origins, product lines and scale of operations, they share a number of common features with each other, particularly in how their growth has facilitated and exploited the opportunities arising from the process of globalisation.Nevertheless, TNCs & MNCs are not all-powerful. They too can be affected by global events outside their control, illustrated most recently by the economic fallout from worldwide lockdowns. History also suggests that, in the battle for power and influence over economies, large corporations are frequently vulnerable to unpredictable decisions from governments; including sudden tax rises, the removal of 'licences' or even the expropriation of their assets.Chapters: Characteristics & Spatial Organisation of TNCs/MNCsReasons for the Growth of TNCs/MNCsImpacts of TNCs/MNCs on Host CountriesImpacts of TNCs/MNCs on the Country of OriginRole of TNCs/MNCs & Nation States in GlobalisationCase Study of Apple Inc.Case Study of BP plcCase Study of Dyson Ltd.Numerous discussion questions and multiple-choice review questions are included, along with graphs and photos, to create a more interactive and educational experience for the reader.It will be of relevance to A Level and IB Geography teachers and students, as well as anyone with an interest in the nature and impacts of transnational & multinational corporations, and their role in the global economy.