ution
TNC play an important role in developing countries in terms of technology contribution. For example, development of deep-water oil extraction may require mature technical skills and capabilities. For those in West Asia tend to remain State-owned oil companies in hand may require high technology and skillful technical from TNC which are not locally available like knowledge of long-distance horizontal drilling expertise used to exploit huge oil. Not only that, for certain countries which with sufficient expertise sometimes may cooperate with TNC in the development of oilfield like Kuwait. By relying on TNC's advance technology and managerial expertise, it can assist them expand globally.
2.4 Enhancement of export
One of the advantages that TNC provided is enhancement of export. This could be seen through mineral industry that TNC helped to boost its exportation by expand it production facilities, value added to minerals and use of transfer pricing within global market. According to the world investment report, involvement of TNC in trading has led the exportation of country increase especially in the field of mineral industry and resulted mineral become main export sources in most of the developing countries such as in Chile, percentage of the exportation of copper in total exports goods rose from 38% to 61% in the period of 2003- 2006.
Another industry that has been affected by the Involvement of TNC in trading is oil and gas field. Participant of TNC helps increase production and exportation of some countries like Argentina, Indonesia, Ecuador and etc. In Ecuador, TNC help increase their exportation of crude oil by adding transport capacity for 400.000 barrels per day (ECLAC,2004).
2.5 Generation revenue to developing countries
Participant of TNC in trading not only increase the exportation of countries but also help to generate revenue. Firms from developing countries may gain a lot from TNC in terms of learn their experience in export market which skill may not found available in local and skills in add value to the raw material before export. Increasing revenue from exportation of countries may help them have the ability to import inputs they needed from foreign countries and the foreign countries may also generate revenue from it.
2.6 Generation of government revenue
A tax system has been designed by government in order to generate revenue from companies by encourage firms finance their investment through intra-company loan. Through this way, government can generate revenue from firms when firms make installment for the loan in which the repayment may reduce firms' revenue for several years (sources from UNRISD, 2005). As mention in the case of Peru (sources: World Investment Report 2007), the net profit has rose from $4billion to $67 billion between 2002 and 2006 due to the growth of exportation. At the same time, tax income the firm paid has been increase as well from $2 billion to $27 billion and it may increase government revenue.
2.7 infrastructure development
Involvement of TNC may increase the infrastructure development in the countries due to the activities of TNC may require public utilities such as water supply, electricity supply, transportation infrastructures like road, railway, and airports for them transfer and export the goods. As an example, involvement of TNC in
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