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Here in the Past: A Theoretical Analysis of Transnational Corporations

Transnational corporations (TNCs), as part of transnational production, are a vital part of the current global economic structure. TN Cs are firms usually owned and controlled by the nationals of one country and enter into direct productive activities abroad. At present when the world faces global economic recession (if not crisis), comprising of a severe meltdown that is posing serious questions over the framework of the international economic structure characterized predominantly by the TNCs, it seems that the Neo-Liberal, Neo-Structuralists and Neo-Radical theories are failing in understanding TNCs. Most of the TNCs have headquarters in the United States of America which has been badly hit by the economic meltdown and this is having a domino effect on other, countries of the world (mostly the developing countries). It seems that we need to go back to the liberal. structuralist and radical theories since the 'Neo' factor seems to be failing in explaining TNCs pragmatically. The following paper would focus on theories trying to explain the TN Cs since the first step in studying international political economy in general and transnational corporation in particular is to understand the theories that have been most influential in the study of the global economic structure.