Final answer:
TNCs grow by expanding operations internationally, influencing host government policies to their benefit, investing in local infrastructures, and providing jobs and goods that raise the standard of living. Despite some criticisms of labor exploitation, they also foster stability and economic growth in the economies they enter.
Step-by-step explanation:
Transnational corporations, or TNCs, which are also known as multinational corporations (MNCs), grow by extending their influence and operations across multiple countries. Historically, corporations like the British East India Company have set the stage for today's TNCs. Modern TNCs have prospered through globalization and advancements in transportation and communication technologies, especially since the 1950s. They grow by leveraging their wealth to lobby for favorable governmental policies, which in turn enables them to expand further and increase their power.
Additionally, TNCs can positively influence the economies of developing countries by providing jobs, investing in infrastructure such as schools and hospitals, and partnering with NGOs to benefit local populations. They often enter host countries with the incentive of exploiting the available labor and resources, given that such countries may not enforce stringent labor laws or environmental regulations. As they prioritize profit, TNCs might set up operations where they can benefit from lower wages and less regulation.
Another avenue of growth for TNCs is through fostering economic environments conducive to stability, as they require a secure and stable environment for their operations. Trade organizations like the WTO help regulate these entities and maintain trade norms. Despite criticisms regarding labor exploitation and cultural neocolonialism, TNCs do contribute to raising the standard of living by providing access to industrial jobs, technological advancements, and high-quality consumer goods in the host countries.