Question

What are some specific effects to a firm going from international to transnational?

Answer 1

The diference between transnational and international is that international is doing business with more than one nation and transnational is between or beyond national boundaries .Unilever, Mc Donalds are examples of transnational companies.When a firm goes from international to transnational there are creation of jobs in the firm but taking into consideration the scale of the investment ,fewer workers are employed.Profits of the firms goes to companies overseas rather than to the locals.There is less investment in the local areas nad the jobs in the firm are not secure. If there is increase in labor cost ,the firm may move to some other country.The firm over exploits the natural resources.