AMERICAN TNCs: BROKEN PROMISE OF FREEDOM AND EQUALITY OF OPPORTUNITY =

Abstract

ABSTRACT

As economic development has become the leading objective of each nation in the world, human care has been gradually faded in order to fulfill that goal. The existence and growth of transnational corporations (TNCs), especially American TNCs has further highlighted that tendency while the USA is often described as destination for freedom and equality. Therefore, this research investigates American TNCs’ respect for freedom and equal opportunity in terms of their labor treatments and expansion strategies when they operate their affiliates abroad. Secondary approach with documentary and contextual analysis of observed phenomenon and case study are intensively used to study about American TNCs’ activities, the co-ordination between their operation and code of conduct in business through detailed contexts. Results of the study prove the link between the expansions of cross-border capitalism and broken promise for better practice of worker and human rights. In particular, burgeoning penetration of American TNCs has threatened host countries’ territorial sovereignty. Furthermore, under the pressure of cutting cost, American TNCs have exploited cheap labor force, and have implemented irrelevant wage levels, poor employees’ benefits and have offered inadequate training and promotion. They also create unequal competition in the interaction with local firms to maintain their monopoly.