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York University (12,355)
SOSC 1340 (17)
Kean Birch (14)
Chapter 5

"Global Shift" Ch5 Summary

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York University
Social Science
SOSC 1340
Kean Birch

th Task: Read and summarize Chapter 5 of Global Shift (2011, 6 edition) by Peter Dicken. Transnational corporations (TNCs) are ones which control operations in more than one country. Firms choose to transnationalize for two reasons: market orientation (to gain a competitive edge in serving a particular market, with products and/or services suited to that particular market and its demand) and asset orientation (to make the most effective and efficient use of material through their stages of production, including concepts such as availability knowledge and skill base, productivity in labour and wage costs). The traditional belief is that TNCs first must have high standing (in the way of market share, brand recognition, profits, etc.) in the home country, and can then transfer these operations to a foreign country; there are many ways to diverge from this traditional path of transnationalizing, such as licencing, outsourcing, franchising, strategic alliances and more. TNCs are said to be networks within networks, being complex in their relations and more difficult to manage than merely a national organization. Due to the number and degree of external forces that may be involved in a TNCs’ operations abroad, relationships need to be maintained with a high degree of care. TNCs are subject to certain benefi
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