The role of transnational corporations cannot be understated in the discussion of the global economy. These businesses have enormous economic clout within the countries that they operate, and it is continuing to increase. There’s no arguing that globalization is slowing down and in the “Sociology of the Global System,” Leslie Sklair highlights the increasing levels of global exports, foreign investment and other types of capital flows as evidence.
The public perception of TNCs is often negative, many believe that they act immorally and only care about the profits generated for their companies. While the goals of TNCs are hotly contested it goes without saying that the larger corporations have certain efficiency gains over smaller companies. The transportation costs associated with business transactions stop many companies from being able to expand and trade to the extent that TNCs are able to. They are able to provide goods and services at a reasonable cost to the poorest people in the poorest countries. The consequences of this are also under debate; many local businesses and economies suffer because they cannot compete with the prices TNCs are able to offer. It is incredibly difficult to be completely for or against TNCs, and people need to come to the realization that businesses have different agendas than governments and other organizations.
