A Transnational Corporation Influence on the World Economy Case Study

A Transnational Corporation Influence on the World Economy - Case Study Example tether major ways in which TNCs participate in the economic activities of the waiter country are through external trade, technology transfer and internationalistic (foreign direct) investment. These activities, both individually and collectively, birth the potential impact host countries in different ways, and these ways depend on several variables. This paper will examine these internationalisation activities and discuss their impact on the economy of the countries involved, especially that of host countries.With the new advancements in transportation, information, communication and technology, international trade has become more prevalent over the past few decades, and especially this past one. Locally, international trade has changed the activities of the market. It has created the need for countries to produce more for export and encouraged a greater dependence on imports to fill gaps in local ma rkets. In the past, international trade had been dictated by colonialism, but straightaway things have got been changing. New superpowers have arisen, and they have given birth to transnational corporations. ... However, the transnational corporations of developed countries have dominated the global economy. The trade agreements formulated among countries have usually rested heavily in favor of the developed countries. Several reasons have been proposed for this, but two stand out. Even in areas where developing countries have a comparative advantage, participation in the global markets has been limited because of market protection that still exists in both developed and other developing countries. The other reason is that the negotiating powers of developing countries are heavily circumscribe by tight budgets (Market Access).