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Since the Second World War the Transnational Corporations (TNCs) have emerged as powerful engines of growth and development in the world economy. Much controversy surrounds the issues of TNCs' benign and malign effects on the development aspirations of host developing countries (HDCs). The TNCs exert immense economic power over HDCs by virtue of their proprietary control over a package of ingredients much sought after by HDCs. This TNC package comprises capital, technology, managerial talent, marketing networks, information and know‐how. The TNCs carefully safeguard their ownership of this package by patents, licences, trade‐marks and a variety of other legal devices. The ownership of the package enables TNCs to extract monopoly rents from HDCs.

The purpose of this paper is to analyse the impact of major structural changes on the conceptualization of the transnational corporation (TNC) based on foreign direct investment (FDI) and on indicators of transnationality.

Analysis of three major structural changes which impact the current conception of transnationality. They are: the rise of digital companies; the increased role of finance in the economy; externalization of activities via non-equity modalities (NEMs) with an impact on FDI and on the labour market.

The paper finds that the current concept of transnationality needs widening to take account of companies with a low degree of fixed assets abroad such as the digital and the financial companies and those internationalizing via NEMs, as well as to take account of the evolving relationship between TNCs and labour.

Future research along the lines proposed should consider: working explicitly with the new, inclusive concept of transnationality and arrive at an empirical estimate of the proposed indices of transnationality which modify and amplify the current United Nations Conference on Trade and Development indices.

Useful for understanding the nature of transnationality in the twenty-first century and for developing policies.

The paper proposes a new concept of transnationality and of the TNC, one that allows for new ways of organizing direct business activities abroad. It also proposes broadening the list of indicators of transnationality.

Addresses the nature of the competitive advantage of the transnational corporation as an institutional form versus alternative forms of economic organization. It is argued that an important – and undertheorized – source of the TNC’s institutional superiority arises from its ability to extract rents from other significant stakeholders such as states and workers through structurally increasing bargaining power (driven by globalization) over these groups. A related issue which is considered is that of the changing sources of competitive advantage for TNCs operating in host countries and their associated distributional effects on key stakeholder groups, presented as ranging from positive‐sum to zero‐sum based on certain specific contingencies. To the extent that the particular sources of TNC competitive advantage matter in terms of their social significance, TNCs can, under certain circumstances, be understood as institutional mechanisms which exploit and extend market failures in the name of shareholder wealth rather than as agents of global allocative efficiency, thus making the question of their overall social utility contentious. Substantial public policy implications are therefore raised and briefly outlined. Some final comments are directed at the need for orthodox theories of the TNC to revisit comparative institutional and distributional considerations.

This article examines the application of "resource dependency theory" to transnational corporations (TNCs) operating in host countries like Bangladesh to explain the relationship between the TNCs and Bangladesh. Data indicate that while the TNCs' participation in a third world host country is encouraged primarily for promoting its economic development, TNCs are mainly attracted by market size, purchasing capacities (determined mainly by GNP) of the population, and stable political condition of the country. Although examination of the application of resource dependency theory provides some insights into understanding the complicated relationship between TNCs and Bangladesh, several other factors, not explained by resource dependency theory, help explain the behavior of TNCs in a host country

The purpose of this chapter is to conceptually analyze reverse transfers of human resource management practices from subsidiaries of transnational corporations in emerging markets to their headquarters in developed countries.

This is a conceptual chapter based on a review of the pertinent literature. Analysis is performed at the organizational and national levels.

We identify the type of transnational corporation best positioned to learn and utilize the potential of its emerging market subsidiaries to advance its human resource management practices. We further identify the types of practices best suited for reverse transfer.

Empirical tests of our propositions are needed. We encourage researchers to extend our research by considering the regional (supra-national), industry and individual levels of analyses.

Managers are informed when and where potential for learning new practices is the greatest, and are urged to scrutinize those corporate units where such potentials exist, and yet transfers do not occur.

Emerging markets offer substantial learning potential for transnational corporations, yet most recent studies focus on transfer of technology and product innovations from subsidiaries, leaving the transfer of human resource management practices largely unexplored. Therefore, this study advances research on organizational knowledge and innovation management, and organization of transnational corporations.

The manufacturing transnational corporations (TNC) subsidiaries established in Mexico are playing a priority role within the labor markets in the Mexican economy, not only because of their participation in exports, generation of foreign exchange and employment in Mexico, but also because they are in command of a process of deep economic change.

Although the impact TNC subsidiaries have on the local configuration of productive networks, business capacities and links with different sectors has not been studied well enough in Mexico, it is nevertheless widely criticized. In other words, TNC subsidiaries undoubtedly have a positive impact on different areas, such as employment, generating foreign exchange, technological and organizational capacities and labor skills, but it is based on a learning that takes place within the affiliated plants themselves and in intra-firm relations. In spite of government and private efforts, their local spill over effects on Mexican companies is still very weak.

The purpose of this study is to identify the impact foreign TNC subsidiaries located in Mexico have on the development of local suppliers. The methodology is based on the application of three different types of questionnaires: one addressed to television TNC assembly plant workers in Tijuana, another to local suppliers, both foreign and national, and a third questionnaire geared to decision-makers and local business associations. We also considered results from other studies and analyzed different sources of information. The questionnaires were applied in Tijuana throughout January 2001.

The results of the study shows that there is an important industrial agglomeration in Tijuana and several institutions support this environment of clustering. Nevertheless, there are major disadvantages for increased local productive capabilities, but still room for Mexican suppliers and for public and private policy.

Transnational corporation (TNC)-led oil investments have been widely encouraged as a mechanism for the development of the Global South. Even though the sector is characterized by major accidents, oil-based developmentalist narratives claim that such accidents are merely isolated incidents that can be administratively addressed, redressed behaviorally through education of certain individuals, or corrected through individually targeted post-event legislation. Adapting Harvey Molotch’s (1970) political economy methodology of “accident research”, this paper argues that such “accidents” are, in fact, routine in the entire value chain of the oil system dominated by, among others, military-backed TNCs which increasingly collaborate with national and local oil companies similarly wedded to the ideology of growth. Based on this analysis, existing policy focus on improving technology, instituting and enforcing more environmental regulations, and the pursuit of economic nationalism in the form of withdrawing from globalization are ineffective. In such a red-hot system, built on rapidly spinning wheels of accumulation, the pursuit of slow growth characterized by breaking the chains of monopoly and oligopoly, putting commonly generated rent to common uses, and freeing labor from regulations that rob it of its produce has more potency to address the enigma of petroleum accidents in the global south.

Aims to examine the issue of industrial strategy (IS), paying particular attention to the case of Britain. Sets out to assess the possibility and nature of an industrial strategy for Britain, in Europe, and within the global scene, taking into account the world we live in as we see it. Accordingly, the perspective is driven and shaped by a quest for a realistic, feasible and sustainable industrial strategy. In order to achieve these objectives, first examines the theoretical arguments behind much of British, and more generally, Western industrial policies. Following this, outlines and assesses British industrial policy post‐Second World War then compares and contrasts British industrial policy with that of Europe, the USA, Japan and the newly industrialized countries. Then examines recent developments in economics and management which may explain the “Far Eastern” miracle, and points to the possibility of a successful, narrowly self‐interested, IS for Europe and Britain, based on the lessons from (new) theory and international experience. To assess what is possible, develops a theoretical framework linking firms in their roles as consumers and/or electors. This hints at the possibilities and limits of feasible policies. All these ignore desirability which, in the author′s view, should be seen in terms of distributional considerations, themselves contributors to sustainability. Accordingly, discusses a desirable industrial strategy for Britain in Europe which accounts for distributional considerations, and goes on to examine its implications for the issue of North‐South convergence. Concludes by pointing to the limitations of the analysis and to directions for developments.

Reveals that, despite the rapid growth of Malaysia and other South‐East Asian economies, very little is known about innovation in the region. Using Malaysia as an example, the evidence shows that technological and organizational innovation at the local transnational corporation (TNC) plant level has played a major part in Malaysia’s export success. Based on recent field research, assesses the nature, focus and extent of innovation within the TNCs’ subsidiaries. Uses a simple model to situate subsidiary innovation within the context of global TNC strategies, and raises key questions concerning the European Union and, in particular, the UK, which now relies heavily on TNCs’ investments for its industrial future.

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.