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ries like Indonesia, Vietnam and Cambodia because of the low wage of local labour and cheaper land to set up factories. Hence, the production cost may reduce and much more profit the firm can generate. Most of the profits generated are returned to shareholders and most of them will export it to their home country and will not stay in the host countries. Hence, the developing countries are not get wealth even there have participant of TNC in trading.

3.5 Outside decision making

Even there have participant of TNC in developing countries, but there is no authority for the countries to make any decision and the decisions are made by headquarter of the TNC. In addition, all decision will be made based on the benefit on their home country not the host countries itself. If they found they dislike the economic condition they will leave the countries and take all the capital they injected away while the profit they generated will not stay long within host countries also but will be exported to their home countries as well.

3.6 Widening gap between developed and developing countries

Due to most of the profit generated within developing countries may not stay for a long and will be exported to their home countries for development. Most of the TNC allocate their factories in developing countries because of the low wage of labour force and cheaper land for set up factories which may help to reduce production cost and generate higher profit. The profit they gain will be exported to their home country for development purpose. The more profit they gain the more development they can conduct toward their home country and it may widen the gap between developed and developing countries. For example, Nike makes agreement with local producers who from developing countries like India and Vietnam to manufacture their products because of the low labour cost and low production cost. The profit generated will not be used for investment in developing countries but export to their home country for development like innovate high technology products, foster more skillful technical and so on. This outflow of wealth is widening the gap between developed and developing countries.

WHY DRIVE TO MNC/ TNC

As we know that TNC is a type of profit-generated organization and powerful in dominant of global economic. Why firms transnationalize? There are some driving forces affecting firms' transnationalize but the most consequence is generating profits.

4.1 Avoid trade barriers

One of the reasons for the growth of TNC is avoid trade barrier by different governments such as quota restriction on import goods, taxes, government's policies and so on. Due to TNCs are able to coordinate and control operations of activities in different countries, hence, they allocate some of their offices and factories in developing countries and take this advantage to distribute their production around the countries. Through this way, TNCs are able to control terms to be traded, product distribution and avoid trade barriers which set by governments.

4.2 Cost advantage

Requirement of low wage labour cost would be another factor affect firms to transnationalise. Firms intend to seek for low wage labour cost in order to decrease their production cost and generate higher profit. Their ability in allocate factories and offices in different countries especial