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Posted on March 11th, 2013, by

Introduction

The 21st century will be included in the global history as the time of formation of the global information society and corresponding economy and politics, characterized by the significant expansion of social actors. One of the subjects, actively influencing the development of public life today is transnational corporations. The current analytic report will discuss the problems associated with this influence and attempt to answer the question if it bears positive or negative character.

Statement of the problem

Significant strengthening of TNCs’ role in managing global economy and international relations has become the dominant trend in the evolution of the global community. At this stage, when TNCs are becoming a truly ubiquitous force, shaping the current and future world, the issues of the formation, operation and the political influence of TNCs in the society gain particular importance.

Proposed Solution

Recognizing the enormous economic potential of TNCs and their role in the development of scientific and technological progress, in this analytical report, we, however, suggest evaluating the fact that the activities of TNCs and their social and political consequences are not that unequivocal. On the one hand, they lead to increased productivity and labor intensity, capacity of production facilities, goods and services, increase national income. On the other hand, an integral feature of transnational economy is a significant contrast between the well-being of large TNCs and serious difficulties the country faces: unsustainable development of production, high inflation, mass unemployment, etc.

Scope and Methods

Applying the research techniques based on current articles and reports analysis as well as statistical data assessment, our report aims at addressing the following tasks: 1) following the general trends of transnational corporations at the present stage, showing that the activities of TNCs is an integral part of international economic relations; 2) identifying the characteristics of the activities of TNCs and their place in the modern world economy; 3) identifying the role of TNCs in the economies based on the analysis of major corporations; 4) describing the flows of investment and determining the location of transnational corporations in the organization of these processes; 5) determining the forms of impact of TNCs on the processes of integration and economic policies.

Conclusion

In general, the ambiguity of TNCs’ activity results becomes topical in the prism of the difficult development of the world political process at the present stage. Thus, the study of the major factors, ways, methods, models and mechanisms for the participation of TNCs in the life of the contemporary society today is particularly significant for understanding the current tendencies in the globalized world.

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