What is transnational corporation?

A transnational corporation is the same as a multinational corporation. It has its headquarters in

one country and has offices or production units in several other countries. Transnationals locate
in foreign countries to take advantage of tax incentives, cheap labor, favorable environmental
laws, etc or to access a wider market.
A transnational corporation differs from a traditional multinational corporation in that it does not identify
itself with one national home. While traditional multinational corporations are national companies with
foreign subsidiaries,[8] Transnational corporations spread out their operations in many countries sustaining
high levels of local responsiveness.[9]
Another example of a Transnational Corporation is the Royal Dutch Shell corporation whose headquarters
may be in The Hague, Netherlands but its registered office and main executive body where the decisions
are made is headquartered in London, United Kingdom.

How is related the globalization to transnational corporation?

transnational corporation related to globalization because transnational corporation spread out
their exports and operations in many countries sustain high level on local responsive same with
the globalization it transport capital, goods and service in other countries for example of nestle
who employ senior executive from many countries to advocate their products and sell them to
different countries all over the world and other products that can be export that why they related
because they have the same process like exporting products in their company in all over the
world.

How it contribute to the poverty?

The transnational corporation contributes to the poverty like foreign direct investment is now considered
as a panacea for poverty reduction and accelerated development, but the reality is more complex. While a
few countries have benefited significantly in terms of economic growth, employment generation and
poverty reduction because of foreign investment, for the great majority it has made little or no difference.
Foreign investment has been concentrated in a handful of countries with more advanced economies, large
markets and mining resources. Smaller countries, even if they get all the policies right, have failed to
attract significant amounts of investment. This should not be a surprise, as foreign investment only goes
to places where it can make adequate profits. The other limitation is that in most countries, the bulk of the
benefits generated are captured by transnationals. Unless they have a diversified economy, the benefits to
these countries consist only of the wages paid to workers- these are by definition modest. And even these
may be offset by the multitude of incentives countries offer to attract foreign investment.