T

Transnational Corporations (TNCs)-a corporation or enterprise that manages production or delivers services in more than one country, but managed from one (home) country. Generally, any firm or group that derives a quarter of its revenue from operations outside its home country is considered a TNC. TNCs usually fall into one of four categories: (1) multinational, decentralized firm with strong home country presence, (2) global, centralized firm that acquires cost advantage through centralized production wherever cheaper resources are available (3) international, firm that builds on the parent firm’s technology or research and development, or (4) transnational, firm that combines the previous three approaches. UN data states that some 35,000 firms have direct investment in foreign countries and that the largest 100 of them control about 40% of global trade. TNCs are controversial because of their economic and political power and the mobility and complexity of their operations. Critics argue that TNCs exhibit no loyalty to the countries in which they are incorporated, but act solely in their own best interest. Also referred to as international corporation.

Treaty – an agreement under international law entered into usually by states and international bodies. A treaty may also be known as agreement, protocol, covenant, convention, exchange of letters, exchange of notes, memorandum of understanding. Treaties can be loosely compared to contracts: both are means of willing parties assuming obligations among themselves, and a party to either that fails to live up to their obligations can be held liable under international law for that breach. The central principal of treaty law is expressed in the maxim pacta sunt servanda “pacts must be respected”.

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