Regulation of Transnational Corporations (TNCs) by Host Developing Countries (HDCs)

Abstract

Since the Second World War the Transnational Corporations (TNCs) have emerged as powerful engines of growth and development in the world economy. Much controversy surrounds the issues of TNCs' benign and malign effects on the development aspirations of host developing countries (HDCs). The TNCs exert immense economic power over HDCs by virtue of their proprietary control over a package of ingredients much sought after by HDCs. This TNC package comprises capital, technology, managerial talent, marketing networks, information and know‐how. The TNCs carefully safeguard their ownership of this package by patents, licences, trade‐marks and a variety of other legal devices. The ownership of the package enables TNCs to extract monopoly rents from HDCs.

Citation

Dias Karunaratne, N. (1982), "Regulation of Transnational Corporations (TNCs) by Host Developing Countries (HDCs)", International Journal of Social Economics, Vol. 9 No. 6/7, pp. 72-89. https://doi.org/10.1108/eb013922