Top Reasons Why Corporations Become TNCs
• To access new markets & increase market share • To gain access to resources, like cheap labor
• To increase shareholder value (stock price)
• To increase profitability
• To benefit national strategic interests
With regard to the final bullet, transnational corporations help to promote and strengthen national interests. For example, oil companies are strategically important as they provide necessary oil for manufacturing, gasoline, transportation, and national defense.