Numerous studies have been conducted on various impacts of international trade on world cultures. However, contradictory results are suggested by various writers and scientific articles authors. This paper examines some academic researcher on the given topic to purpose that additional research can be conducted to better understand how international trade influences cultures and economy. Sokolova states that: “Although TNCs bring immense benefits, their functioning is often correlated with negative impacts as well”. (Sokolova, 2010)
Eckhard Janeba states that: For economists globalization and trade liberalization are good because physical output increases as the result of international specialization, which in turn enlarges the consumption set and hence makes individuals better off. (Janeba, 2004) However in the same article he argues that globalization can negatively impact and even erode national cultures and individual identities. (Janeba, 2004) There is no doubt that allegiances affect cultural activities. What is more, in the modern world economy develops under the influence of TNCs by transformation and interoperability of globalization and glocalization.
However it is really important to remember that in the actions of TNCs are guided primarily the desire to maximize profits and minimize costs, not always being considered at the same time with the interests of their host countries, so to maximize the benefits of FDI inflows into the country the government should develop a clear program of cooperation with foreign investors to expand their relationships with national manufacturers.
According to UN experts, transnational corporations are "engines of the world economy." In the booklet which was provided for the UN Conference on Trade and Development is stated that: “International agreements give more rights to firms to operate internationally”. (Ricupero, 1999). Indeed, today TNK are as equal participants in international economic relations, as well as the actual state home and host countries. In addition, investments by TNCs in foreign economies - the active agent to stimulate demand for domestic products. This is achieved through the creation of new markets abroad and export of the products produced by corporations by foreign affiliates. Thus, for the home country opens access to new markets capacious. In view of the political changes in the world today come to the fore issues of economic interests of the state, strengthening the competitiveness of their goods and services in world markets. Support and protection of national producers, increased their exports by many countries is raised to the rank of state policy, one of the priorities of national security.
As Janeba states in his article that “the increase in physical consumption of mass produced goods of western origin like McDonalds hamburgers, Hollywood movies, and pop music, is seen as negative because it crowds out self-produced or locally manufactured goods.” However it should influence economy in any way because the influence of transnational corporations (TNCs) on the economies of the various countries of the world is constantly growing. Today, major corporations can dictate terms not only of its competitors, but whole states - due to its financial power and political lobbying at the highest levels. Revenues of these corporations exceed the GDP of many countries of the world, they create millions of jobs in each country, and some of them are already economically constituent nationalities.
Many multinationals have monopoly power. Some of them are superior in terms of turnover of the country and the leaders of these companies tend to do business directly with heads of state. What is more, they not only encourage development and research but ensure business revenues, invest in education and facilitate international relations which are peaceful and generative. (Sokolova)
Transnational corporations represented in many countries of the world, are able to influence all spheres of public life. But the biggest and powerful are able to evade even the economic and political control. In the history there have been cases where foreign investors have sought the support of the actions of the political leadership, regardless of the consequences for the local population and the welfare of the country as a whole.
References
Eckhard Janeba. (2004) International Trade and Cultural Identity. National Bureau of Economic Research. Web. nber.org
Elena Sokolova (2010) Direct and indirect influence of transnational corporations on human rights. Effective Justice Solutions. Web. effectius.com
Rubens Ricupero. (1999) The Social Responsibility of Transnational corporations. United Nations Conference on Trade and Development. Web. unctad.org