The Impacts Of Transnational Corporations On Less Developed Countries

2671 words - 11 pages

The issue of the impacts transnational corporations have on less developed countries has been a controversial and much disputed subject within the field of economics and development studies. Researchers using various models such as the Rostow Development model, Harrod Domar model and the Neoclassical Theory Model, have studied these impacts and have tried to come to a conclusion to this issue. Researchers have also conducted many case studies in order to investigate in depth factors contributing to impacts and whether there are differences due to external factors. The issue has grown in importance over the last decade and this paper attempts to discover whether the impacts are beneficial enough in order to uphold transnational corporation activities in less developed countries. The first section is a literature review, which will consist of a brief clarification of economic development and explain different economic development theories, which will help, evaluate whether activities by transnational corporations help accelerate economic development in LDCs. It will also consist of different scholars definitions of outsourcing, networking and linkages further evaluating the costs and benefits of these activities by transactional corporations. The analysis section will consist of a case study of Nigerian offshore drilling. This case study gives a more depth analysis of the negative impacts TNCs can have on LDCs. Transnational companies are contributing to economic development, showing positive and negative impacts transnational corporations have on host countries through real case studies that have been conducted by other researchers. The conclusion section will consist of an examination of all the research prior to this section to thoroughly display all arguments for and against transnational companies accelerating economic development in LDCs. This step is crucial in order to proceed to the conclusion stage; a SWOT analysis is also used in this section.
Also consisting of a summative text concluding and answering the main question of this study, Can economic development be significantly accelerated in LCDs by TNC’s use of Outsourcing, Linkages and Networking?

Literature Review

In order to examine whether economic development can be accelerated in low developed countries it important to define and identify the characteristics of Economic Development. Economic development is significantly more advanced than economic growth. It is more relevant to measuring improvements in the quality of life in developing nations. Economic development is also concerned with literacy rates, life expectancy, poverty rates and structural changes in the economy.
According to Todaro & Smith 2011, Economic Development can be specified into three objectives of development. The first is ‘Sustaining Goods and Services’; this objective is the increase in supply of goods and services, which also widens the distribution of basic needs such as food shelter, health and...

Find Another Essay On The Impacts ofTransnational Corporations on Less Developed Countries

Sustainability of Water Provision in Less Economically Developed Countries

1179 words - 5 pages these infrastructures do come with various risks and disadvantages such as high costs and negative impacts upon the environment and sometimes on human health (United Nations , N.D.). Many less economically developed countries are finding that these solutions alone are not vast enough to overcome the increasing demands from various economic, climatic and environmental pressures (GCSE Bitesize , 2010). There has therefore been a demand for waste

IMPACTS OF TOURISM: PLANNING AND POLICY DEVELOPMENT CRITICALLY ASSESS THE KEY ARGUMENTS REGARDING THE OUTCOMES OF TOURISM IN LESS DEVELOPED SOCIETIES

2106 words - 8 pages bring many detrimental affects on both the developing and developed countries.For this essay one will predominantly look at the impacts of tourism in the world we live in. One will also be looking at issues surrounding development of tourism in the world and why the public and private sectors are concerned with developing tourism.Private and Public SectorAll governments have a vital interest in the health of their countries economy. Working along

The Impacts of Globalization on Developing Countries

1600 words - 6 pages to prosper or succeed leading to higher increase in poverty. This has led to even higher increase in regional inequalities amongst the nation. Lastly, the impacts of multinational corporations on developing countries and its people is another factor to look into when arguing the negative impacts of globalization because there are many drawbacks of it ranging from interference in a developing nation’s sovereignty, exploitation of labour

How the Good Life in Developed Countries Depends on the Exploitation of Underdeveloped Ones

1073 words - 5 pages The good life in America, or anywhere else is based on the same fundamental human needs, which are physiological. However, with the advent of modernity it has evolved to include many other resources that would be impossible for a single civilization to acquire. Currently, we cannot fulfil those fundamental and luxury needs without the exploitation of cheap labor in under developed countries. However, the good life is more than just the

Trade, Protectionism, and the Developed Countries

1845 words - 7 pages measures imposed by developed countries, they have often times implemented protectionist measures in order to protect their local economy and to increase government funds. A good example is Brazil which has been a WTO member since 1995. The government imposed a 30 percent tax in 2012 on imported cars, in order to strengthen the local production and economy. It is remarkable that imported cars reached a market share of 23 percent in 2012 ‘jumping

Impacts of WTO on Trading Countries

1287 words - 5 pages Impacts of WTO on Trading Countries      International trading has had its delays and road blocks, which has created a number of problems for countries around the world. Countries, fighting with one another to get the better deal, create tariffs and taxes to maximize their profit. This fighting leads to bad relationships with competing countries, and the little producing countries get the short end of this stick

Discuss whether natural disasters have a greater impact on developed countries than developing countries

1438 words - 6 pages the infrastructure to protect themselves as much as possible, so as to reduce the damage and the loss of lives. Developed countries have a set of infrastructural methods they carry out to speed recovery from the catastrophe, therefore cutting short the prospects of a lasting effect on the nation. These infrastructural systems not only help in recovery, but they have a very important role of the readiness of the country, as the systems could also

How to Bridge the Gap Between Developed and Undeveloped Countries

2194 words - 9 pages to answer the question of what can be done to bridge the economic gap between developed and developing countries. Emphasis will be placed on a few countries namely Singapore, which has recently undergone rapid economic growth, and Rwanda, a poor agriculture-based economy. 
 I chose this topic because I believe it is important to discuss, consider and resolve the relevant challenges that we face today. The global economy affects everyone

Human Impacts on the Earth

2435 words - 10 pages released into the atmosphere is from coal. Unlike automobiles, coal CO2 can be recaptured and placed back into the ground (Hansan). With coal being at such a high CO2 rate recapturing it would benefit the environment. It would cost money but it would be easier and cheaper to go after the coal companies then pick at the rest of the 30% of excess fossil fuel CO2. It is the well-developed countries that are huge contributors to excess carbon. Every

Childhood Obesity, and Ever-Growing Problem in the Young Generations of Developed Countries

2152 words - 9 pages -affluent regions in developed countries and high-affluent regions in developing countries. Concluding the clues, this may lead to an increased time in stationary activities like watching the television and computer for entertainment or studying purposes at the expense of outdoor activities and exercise. Parental influence is another factor which requires attention and discussion as they resemble the greatest portion in the process of raising the

The Impacts of Weather on the Mood

1479 words - 6 pages The Impacts of Weather on Mood “Besides taking a hit on our ability to spend time outside, both in extreme and everyday cases, weather can have a real impact on our health and well-being” (Gregoire). The impact of weather upon a person goes beyond their choice of apparel or their plans for the day; it can directly affect a person’s mood, for better or for worse. Do the dark, gray skies on a rainy day actually cause someone to feel gloomy? Would

Similar Essays

Industrialising Less Developed Countries Essay

2979 words - 12 pages drawn from these cases, specifically that through the process of industrialisation LDCs can achieve the levels of development of the DCs and this inference will be supported through the analysis of Human Development Index (HDI) rankings and scores for 2010. The focus of this essay will be on the experience of industrialisation for three Less Developed Countries (LDCs). Within the Latin American region Brazil and Chile will be examined, as

Poverty In Less Developed Countries Essay

687 words - 3 pages presents a problem and the shortage of money leads them into the vicious circle of poverty, where one factor leads to another and eventually the situation spirals to terrible extents. Natural disasters plunge developing world countries and less economically developed countries. For example the heavy flooding that wreaked havoc on the inhabitants of Mozambique and the Gujarat earthquake disaster of early 2001. The disasters

More Economically Developed Countries And Less Economically Developed Countries

851 words - 3 pages Comparison Between MEDC and LEDC The comparisons between MEDC- More Economically Developed Country and LEDC-Less Economically Developed Country are many and varied but are mainly related to finance which gives the MEDC a higher standard of living for its occupants than those of the LEDC. Geographically most MEDC are situated in the northern hemisphere were as the LEDC are mostly in the southern hemisphere. Most MEDC are well advanced

Agriculture In More And Less Developed Countries

2105 words - 8 pages into the less developed countries, where the output of the farm is used on or near the farm where it is produced, and the more developed countries, where the farmer sells the crops and livestock. There are some major differences between what we do in the United States and what others do in other countries concerning agriculture. As one can see, agriculture is a very important way of life for many different people all over the world. The uses of