ABSTRACT

This chapter examines the effects of transnational enterprises (TNE) on social structures and inequalities, and focuses on TNEs' impact on cultural systems. Since scholars have offered a wide variety of definitions of TNEs using different criteria-variables, it is necessary to mention that we follow the United Nation's definition which has the widest acceptance. The enterprises which operate within the confines of national boundaries have been termed as national enterprises. The majority of TNEs are undoubtedly based in a few highly industrialized nations. The TNEs' impact on the societies of developing countries can be conceptualized in various ways. The contribution of TNEs to the growth of the working class is both direct and indirect. TNEs employ skilled and unskilled workers in their subsidiaries. TNEs generally introduce new products and product innovations in industrialized nations where they have large markets and effective sales organizations. The chapter also presents an overview of the key concepts discussed in this book.