GGR325H5 Study Guide - Midterm Guide: Trade Union, Workforce Productivity, Competitive Advantage
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Headquartered in one country but operates wholly or partially owned subsidiaries in other countries. A tnc is a firm that has the power to coordinate and control operations in more than one country, even if it does not own them. Coordinate and control production networks in numerous countries. Capitalize on geographic variations in factors of production. Micro-level approaches (oli theory: ownership-specific advantages. Assets a firm controls that other firms do not have: location-specific advantages. Local factors that make it profitable for a firm to use its assets at that location: internalization. To maintain control and maximize the profit of a transaction a firm will keep their transactions within the firm: two broad categories for firms motivation to become tnc = market oriented and asset oriented, market oriented expansion. A company wants to sell their goods/services in a foreign market. Three attributes of markets are especially important: Market size: largest geographical markets in terms of incomes, not population are the.
