||The purpose of this work is to examine the nature of transnational corporations and different ways of their economic and political influence. The thesis is constructed on deductive bases telling about transnational corporations all over the world whereupon analyzing their certain activities in the Republic of Kazakhstan as an example of transition economy. In the beginning of the thesis, there is a definition of transnational corporation and discussions of common economic theories. Business of transnational corporations and its consequences for host economies are in concern of the first chapter. However, the impacts are not clear for every country. The overall effect depends on particular industry, government regulation, and behavior of foreign affiliates. The second chapter is fully related to the Republic of Kazakhstan. It deals with the economic context of the country and preconditions of transnational corporations’ appearance and analyzes Dutch disease presence. There is a linear regression model with the data from 1993 and 2008 in the third chapter where FDI inflows are explained by few significant variables. Summarized results suggested by the research prove that Dutch disease has not taken place in Kazakhstani economy. Last chapter is devoted to particular companies operating in oil and gas industry – Shell Corporation and KazMunayGas national company – comparing their business and social activities. Conclusions based on these two particular examples suggest that both types of companies might be beneficial for the host economy. Wise external and internal government policies, improved legislation, and competition will guarantee health economic environment for both local and foreign investors.