The Interaction between the Investment Behavior of Transnational Corporations and the International Political and Economic System

Abstract

With the development of economic globalization and world modularization, more and more economic activities transcend national boundaries, making the connection between the organic economic whole formed through foreign trade, capital flow, technology transfer and other activities become closer. Transnational Corporations (TNCs) come into being in this context, making the global convergence trend of the economies of the world in production, distribution, exchange and consumption links more obvious. Because TNCs usually conduct economic activities in two or more countries, their strong economic power will inevitably affect the economic, political, cultural and social life of the country. On the one hand, the investment and business behavior of TNCs will have a series of effects on the local economy of the host country, and in some economic fields, TNCs can even interfere with the political order of the host country. On the other hand, in the process of globalization, transnational corporations themselves will also be affected by the international political and economic situation.