Transnational corporations (TNCs) are companies that have the power to coordinate and control their operations in more than one country, even if they do not are not the owners. Many overseas branches of TNCs are located in less developed countries (LDCs), including newly industrialized economies (NIEs), newly industrialized economies (RIEs), and least developed economies. Generally speaking, the socio-economic, environmental, cultural and political impacts brought by TNCs are more positive in more developed LDCs such as the NIEs and some MICs than in other countries, mainly the least developed countries. On a socio-economic level, TNCs actually bring advantages in the development of the economies of their host countries. According to cumulative causality, when TNCs subcontract to a third party company, more jobs will be generated. A higher employment rate increases the personal income of residents, thereby generating more purchasing power for consumer goods, leading to the growth and development of service industries, thereby boosting the local economy. TNCs provide financial support to their host economies since they must pay taxes to the government and local authorities. With this increased revenue, the government is able to invest in the development of better physical infrastructure, such as roads and electricity, and in social services, such as care and health services. This in turn attracts more foreign direct investment (FDI), thereby boosting overall economic growth. Taking China as an example, 760 million rural people have migrated to urban areas in search of job opportunities. It is estimated that TNCs have helped lift 200 million Chinese people out of poverty. It should be noted, however, that stimulating the economy of their host countries is not the main objective of TNCs, but an advantage brought by...... middle of paper ...... obtaining a advantage which allows them to request to override these legislations and to exploit the host economy as much as possible. Desperately in need of FDI to boost the local economy, these countries are offering tax breaks and subsidies, and relaxing environmental regulations to create an attractive atmosphere for TNC investments. As for more mature NIEs and RIEs, they have more effective governments and stronger negotiating power that allow them to reap more benefits from TNC investments while protecting local industries. The first and ultimate objective of TNCs is essentially to make money. making profits by taking advantage of natural resources, state policies, labor and markets. Although some advanced LDCs may benefit from the benefits brought by TNCs, many others lose out. Therefore, the negative impacts of TNC activities in LDCs outweigh the benefits they bring..