The most influential players in promoting economic development are TNCs. The largest of these companies now match some countries in terms of their wealth, power and trading.
Traditionally, TNCs have located in developed countries or in NICs (South Korea, Taiwan, Singapore, Malaysia). However, other areas of the world such as the emerging BRIC economies and South Africa are developing their own large corporations.
Indicators
The UN's transnationality index (TNI) is based on three ratios: foreign assets to total assets, foreign sales to total sales, and foreign employment to total employment. The geographical spread index (GSI) addresses the nubmer of countries in which a company operates.
TNCs can provide opportunities for economic development and poverty alleviation in a country. Whether a TNC invests in a country depends on its resources, the size of the economy, the business environment, government policies and how skilled the workforce is.
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