‘The UN has worked tirelessly to promote growth and stability across the globe, but TNCs have
been far more successful in this regard.’ To what extent do you agree with this view? [20 marks]
TNCs are companies that operate in at least two counties and may operate in many different forms
and sectors. This includes Apple and Nike. The UN is an intergovernmental organisation where
nations gather to discuss shared solutions and aim to achieve international peace alongside
promoting sustainable development through its agencies such as the FAO. To some extent it could be
argued that the UN is more successful than TNCs at promoting growth and stability across the globe.
One way in which TNCs contribute to growth and stability is by providing high-salary employment
within the country of origin. For example, Apple’s headquarters are located in Apple Park, Cupertino,
Northern California. Subsequently, there has been an increased availability of high-salary jobs such as
brand design. Ultimately, this enhances the skills of individuals working at the headquarters who
benefit from this in the long-term as they are able to transfer the skills they obtain to other careers.
This promotes the growth and development of the local industry as workers have a greater skill set
and experience. Furthermore, it also provides these employees from those home countries to have
more opportunities to work globally. This aids the stability of individual’s careers as their work is not
dependent on just one national market. This is applicable for most TNCs as the majority of the time
headquarters of a company remain in the home countries despite outsourcing. However, TNC’s
successful promotion of growth and stability is not just limited to the country of origin as it also
benefits the host country. For example, TNCs pull capital into economies. Due to increased
employment by component suppliers and distributors, more disposable income is spent on local
services and housing through the process of cumulative causation. Therefore, the economic base of
host countries are widened, promoting national economic growth and stability due to greater
wealth. For example, Apple employs 6,000 people in Cork, being the largest local private employer.
This has ultimately provided Ireland with greater economic stability as there is reduced economic
vulnerabilities due to the capital provided by Apple. Therefore, it could be argued that TNCs have
been more successful in promoting growth and stability in comparison to the UN.
However, it could be argued that TNCs are less successful in promoting growth and stability in
comparison to the UN. For example, some exploit cheap and non-unionised labour in poorer
nations. Ultimately, this refutes stability as it means that more profits are sent to the home country
rather than staying in the host country, therefore causing the economy to shrink. For example, in
China workers work for an average of 62 hours for $300 per month. Although half of this is spent on
living costs, Apple has failed to reform factories, proving it does not successfully promote growth or
stability at a local scale. Additionally, TNCs catalyse urbanisation as the establishment of factories in
major urban areas leads to their expansion. For example, in China Foxconn employs 1.3 million
people who work for Apple. Many of these employees will be young people who have moved from
rural parts of China. Subsequently, this creates a reverse multiplier effect. This is because, as the
workforce in rural China decreases, disposable income falls. Therefore, a spiral of local decline
occurs. This will majorly decrease the standard of living for individuals who remain in these areas.
Additionally, it prohibits growth and stability of rural areas in the long-term as there is a loss of the
manufacturing base. Therefore, it could be argued that TNCs are not successful at promoting growth
and stability.
Equally, it could be argued that the UN has been far more successful at promoting growth and
stability across the globe, in comparison to TNCs. This is because, the FAO, a key agency of the UN,
carry out sustainable management of resources on a global. This ultimately promotes growth and
stability as it ensures the availability of resources for future generations. Furthermore, in Zambia, the
FAO worked alongside the Ministry of Agriculture in Zambia to launch the Conservative Agricultural
