GEOG 2LE3 Lecture Notes - Lecture 18: Anti-Globalization Movement, Free Trade, Vertical Integration
4 Jun 2018
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Lecture 18 - Transnational Corporations
Transnational Corporation:
• a fir that controls and coordinates the atiit of other firs i ore tha oe outr
• involves headquarters in one country and branch operations in more than one foreign country
Myth of the Global Corporation:
• the orgaizatioal akeup, orporate ehaior ad or usiess ill e the sae i differet
places and geographical contexts
• plae has liited ifluee o TNCs
• usiesses are stadardized for ore effiiet orgaizatio
• unliited/eorous fiaial apital, assie produtie apait, huge leels of eploet,
access to technology and knowledge
In reality:
• haig a gloal presee does ot ea that orgaizig o a gloal asis is eas, effiiet or the
same everywhere;
• TNCs eed to ofigure their futios to differet loal eooies ad plaes.
Global Production Networks (GPNs)
Transnational Corporations:
• operate i the otet of GPNs
• organize and coordinate differet atiities that lik differet ators:
- global partners other TNCs
- Suppliers
- serie proiders fiaiers, aageet osultats, logistis
- customers
Transnational Corporations:
• are NOT autonomous and vertically integrated
• Vertical integration = the combination in one company of two or more stages of
production
• constituted by intra-firm ithi the fir ad inter-frim outside the fir etorks ad a ide
range of actors
• must coordinate a wide range of global players
find more resources at oneclass.com
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Document Summary
Transnational corporation: a r(cid:373) that controls and coordinates the a(cid:272)ti(cid:448)it(cid:455) of other r(cid:373)s i(cid:374) (cid:373)ore tha(cid:374) o(cid:374)e (cid:272)ou(cid:374)tr(cid:455) involves headquarters in one country and branch operations in more than one foreign country. In reality: ha(cid:448)i(cid:374)g a glo(cid:271)al prese(cid:374)(cid:272)e does (cid:374)ot (cid:373)ea(cid:374) that orga(cid:374)izi(cid:374)g o(cid:374) a glo(cid:271)al (cid:271)asis is eas(cid:455), e (cid:272)ie(cid:374)t or the same everywhere; Tnc(cid:859)s (cid:374)eed to (cid:272)o(cid:374) gure their fu(cid:374)(cid:272)tio(cid:374)s to di ere(cid:374)t lo(cid:272)al e(cid:272)o(cid:374)o(cid:373)ies a(cid:374)d pla(cid:272)es. Transnational corporations: operate i(cid:374) the (cid:272)o(cid:374)te(cid:454)t of gpn(cid:859)s organize and coordinate di ere(cid:374)t a(cid:272)ti(cid:448)ities that li(cid:374)k di ere(cid:374)t a(cid:272)tors: Suppliers ser(cid:448)i(cid:272)e pro(cid:448)iders (cid:894) (cid:374)a(cid:374)(cid:272)iers, (cid:373)a(cid:374)age(cid:373)e(cid:374)t (cid:272)o(cid:374)sulta(cid:374)ts, logisti(cid:272)s(cid:895) customers. A gpn is a (cid:374)et(cid:449)ork s(cid:455)ste(cid:373) that is (cid:272)oordi(cid:374)ated a(cid:374)d (cid:272)o(cid:374)trolled (cid:271)(cid:455) a glo(cid:271)all(cid:455) sig(cid:374)i (cid:272)ant tnc and involves a vast network of o(cid:448)erseas a liates, strategi(cid:272) part(cid:374)ers, ke(cid:455) (cid:272)usto(cid:373)ers a(cid:374)d (cid:374)o(cid:374)- r(cid:373) i(cid:374)stitutio(cid:374)s. Con guration examples: corporate decisions are centralized by headquarters, regional offices located in various regions implement the decisions made at headquarters (tight control over the process)
