Question

Chapter 4 question from Global Communication) You are introduced to Herbert Schiller and the industry of global communication. In a well developed paragraph, explain why Schiller warns us to be critical of the role transnational corporate capital plays in international communication.

Answer 1

Transnational corporations as a result of technological and scientific revolution development are one of the most vital and most dominant phenomenon of modern international communication. Transnational corporations (TNCs) play a significant role in international investment flows; and directly affects the new trends in global business, international competitiveness on global markets as well as economies of states, nation. Transnational corporations play within the current international economic communication processes to assure sustainable economic growth in the global economy and improve the competitiveness within the global economy environment.

Schiller warns the economy to be critical of the role transnational corporate capital plays in international communication. TNCs are often of the oligopolistic nature of global corporations can undermine market forces and permit unreasonable profits. TNC's, by moving production to nations with lower standard of living and wages can hinder the growth of living standards and strengthen the dependence of less developed nations on the richest nations. With transfer of assets to nations with lower social contribution of payments TNC's minimize their tax burden. International maneuver of multinational corporations often weakens states' abilities to pursue autonomous economic policies, which especially in the scenario of weaker nations is the only option to meet their demands of foreign investors It is generally done by providing incentives, investment incentives, exemptions, adaption of the labor and social legislation and education etc. These can also influence political development in certain countries for their own benefit or the gain of their home nations.