SOSC 1340 Chapter 5: "Global Shift" ch5 Summary
1 Dec 2013
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Reading(s): chapter 5, peter dicken (2011) global shift (6th edition), guildford press. Economies vary from country to country but the national global economy will always be controlled by transnational corporations (tnc"s). Tnc"s are large firms that operate in more than one country. These kind of corporations are global hence why they have such a big influence on the national economy. These corporations are capitalist enterprises so they must behave according to the basic rules of capitalism. Although such corporations strive to increase their profit, their main goal is to increase their share of a market and to become the leader of a specific type of industry. The transnationalize process of a firm usually begins through the usage of overseas sales agent to export their goods. A sales outlet is then established overseas to distribute the exported goods. When the market for such goods becomes stable, a production facility is built. These are the major steps that transnationalize a domestic corporation.
