The Transnational Corporation Factor In The Development Of Singapore Economy

The transnational corporations had produced deep and obvious function Lo the economic development of developing country with the further intensification of the economicglobalization since World War II. Singapore-newly industrializing country that did notfound a state until 1965. It had close relations with the transnational corporations from economic startup to fast development to present ripe development. The text mainly dissertates the profit and fraud about the transnational corporations to the Singaporean economic development, and gets some enlightenment from it. The impact on Singaporean economic development of the transnational corporations was positive mainly such as promoting the effective use of existing resource and potential resource of Singapore, solving the difficult problem with insufficient fund on the initial stage of development, etc. At the same time, the transnational corporations had negative sides to the Singaporean economic development. It was mainly that the transnational corporations unilaterally pursued the their own interests that brought unfavorable influence to Singapore , and that Singapore depended on the transnational corporations excessively that made itself in the passive position. The method that Singapore developed its own national economy mainly depending on the transnational corporations is very successful before the Southeast Asian financial crisis breaking out in 1997. It had gotten the rich income. However, people had to examine closely the enormous risk and serious consequence because of depending on the transnational corporations excessively again when the crisis brook out unavoidably and the most serious economic recession since the foundation of the state happened in Singapore in 2001. We can get some enlightenment from the case study about development of Singapore economy mainly depending on transnationalcorporations----Depending on the transnational corporations was a very good route on initialstage of economic development; the host country must perfect "exercises to benefit the internal organs" by itself and carry on essential supervision and standardize to the transnational corporations in order to evade the risk.