A corporation is considered a legal person under law, with the right to loan money, buy, sell, sue and be sued. The term corporation means a group of people, usually quite large, or companies that are recognized and act as a single entity. This means that a company has the ability to buy land, borrow money from the bank, and even sue other people. This is essentially allowing corporations to become the superpowers of the political and economic world.

Features of a Corporation


A corporation's stockholders have limited liability, meaning that they cannot lose more money than they invest in the company. Stockholders also receive dividends from the corporation. Some corporations can become quite large, to the point of being considered transnational corporations. Most corporations nowadays are staying private, however, to protect the corporation and to generate great profit for the owners.

Transnational Corporations


Corporations that develop, manufacture, or deliver their goods in more than one country are known as transnational corporations. Sometimes, these are also referred to as multinational corporations or worldwide trading corporations. These corporations have developed enough that they now trade their products or offer their services all over the world. Corporations such as Microsoft and Sony are examples because they have developed a basis over every continent.

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Google_Logo.png

The logos of some well-known transnational corporations.

Perspectives


Transnational corporations have created much debate over their benefits and drawbacks. Not only do they invoke the controversy over trade, they also create concern about their power. These corporations can have budgets exceeding those of some Third World and even some semi-developed countries, allowing them to lobby governments and politicians to vote in their favour. In modern day capitalistic markets, the big corporations have ways to lobby most everything in their favor.

On the other hand, it can be argued that transnational corporations benefit people through the low prices produced by efficient production and economies of scale, as well as providing employment for millions of people. However, large corporations are abusing the low wage prices and poverty in countries in parts of Asia and Africa. Corporations can find people wiling to work for much, much lower than they can in developed countries. Below you find a picture of workers in a clothing factory in China. These workers are paid very little but it provides them with enough money to get food and provide for their families. Without big corporations that provide these jobs, many millions of people around the world would be living in worse conditions than they are now. Corporations such a Nike have created jobs in completely undeveloped countries and allowed the economy to grab hold and for the country to evolve in a nation. This, in itself, is a huge contribution to the world society.

Here is a picture of workers creating clothing in a factory in China.
Here is a picture of workers creating clothing in a factory in China.


East_India_Company_cartoon.jpg
A poem and cartoon about a historical transnational corporation.




Microsoft_RedWest_Landscaping.jpg
Landscaping at Microsoft's Red West campus.


Which one is "right"?

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Starbucks - Consumerism ??

Sources


http://en.wikipedia.org/wiki/Google
http://en.wikipedia.org/wiki/Nestl%C3%A9
http://www.platformlondon.org/fitc.asp
http://en.wikipedia.org/wiki/Microsoft

Edited by: - sen-rundle sen-rundle