Transnational corporations (TNCs) and poor countries: reflections on global governance

Abstract

Transnational corporations (TNCs) incorporate areas of poor countries while there are no exploring opportunities in other countries, they transfer their investments from country to country, territorializing / deterritorializing countries and regions, changing the spatial configuration of the world, creating and expanding inequality between, mainly, poorer countries. TNCs could be controlled by global, regional, national or local regulatory bodies more present and effective, mitigating the negative effects of the advancement of capitalism in the world. In this sense, this study analyzed, through literature review, the alternative of existence of regulatory bodies to contain the adverse effects of the process of advancement of transnationals corporations in host countries. Therefore, it was necessary to deepen the knowledge of the new configuration of capitalism and its consequences for the poorest countries, as well, to analyze the spatial practices of transnational corporations that led to the fragmentation of the production process on a global scale, incorporating regions and countries, but not in a homogeneous form, although some of the reasons for the differentiation of the process of incorporation of spaces by transnational corporations be well known, as they are the result of the advancement in communications, as well as the facilities of a scientific base developed by the availability of research facilities in host countries, besides the advantage cheaper labor, and the facilities offered by local governments.