Question
Examine the impacts of TNCs in global economy.
Answer :
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Transnational Corporations (TNCs) have become central actors in the global economy, shaping international trade, investment, production, and even the political landscape. Their operations extend across multiple countries, integrating diverse markets and linking developed and developing economies. The impacts of TNCs in the global economy can be understood through their role in economic growth, technological advancement, employment, cultural integration, and also in relation to inequality, exploitation, and sovereignty concerns. One of the most significant impacts of TNCs is their contribution to global trade and investment. TNCs account for a substantial portion of world trade, often engaging in intra-firm trade where goods and services are exchanged within subsidiaries across borders. They bring large volumes of foreign direct investment (FDI), particularly into developing economies, which stimulates industrial growth, infrastructure development, and employment opportunities. For example, the presence of
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