Abstract

The article focuses on transnational corporations (TNCs). In the search for ways and means of promoting international development, which is one of the United Nation's (U.N.) important tasks, it was inevitable that the role of TNCs should be considered. Not only are they central actors in international economic relations, but their importance has grown in recent years at about twice the growth rates of the industrialized countries, and faster than world trade in general. Managerial and marketing skills, advanced technology, new products, and access to capital tend to be associated with TNCs. They operate the bulk of the world's foreign direct investments and thereby have capabilities which can be put to the service of development. These distinct capabilities of the TNCs, facilitated to a large extent by centralized decision making and a global network, are in principle recognized by both developed and developing countries. However, TNCs became sources of apprehension when it became apparent that their global strategies do not always take into account the national objectives of host countries.