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Transnational Corporations and Their Role in the Economic Development

Mentor Qerim Shaqiri, Ismail Mehmeti, Orhan Maxhun Çeku

Abstract


This paper analyses the role of transnational corporations in a country's economy within the global economy. Over the last two decades of the twentieth century, in the world economy, there has been a rapid increase in the number of corporations. The increasing number of corporations has come as a result of large investments and adequate business plans in line with market requirements. The bigger the company is, the bigger the field for action. This has in some way even determined the merging of various companies, which then have extended their influence on the world's major markets. Corporate empowerment has raised many other issues related to their economic activity such as: the issue of workers’ rights, the elimination of double taxation, the issue of monopolies by these corporations, the insurance of the capital of these corporations, up to eventual bankruptcy. Thus, all these issues raise dilemmas regarding the role and impact of corporations on the development trends of a country.The aim of this paper is to identify the impact of transnational corporations on the development of a country's economy. For the elaboration of the paper several scientific methods have been used, including the literature review and the analytical method for analysing data from the field.


Keywords


transnational corporation; company; economic development; international trade

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