Political Science 2231E Lecture 8: PoliSci 2231 -- 8.2 -- MNC

• School: Western University
• Department: Political Science
• Course: Political Science 2231E
• Professor: Richard Van de Wetering

Document Summary

Companies that have operations in more than one country. They will have their headquarters in just one country (the home" country) but will either manage production or deliver services in other countries ( host" countries). Multinational corporations will outsource elements of their production where overseas locations give them some sort of economic advantage that they cannot secure at hone: this might be labour cost advantage, a tax advantage, an environmental standards advantage, etc. The term is also used of a company that has affiliates in a foreign country. These may be branches of the parent company, separately incorporated subsidiaries, or associates with large minority shareholdings. Traditional mnc: company which is based in one country but operates in many. New stateless mnc/tnc: a type of actor that took the international profile to a logical end. Became stateless without a specific national identification. International management, free capital which moved from one state to another.