TNCs in the global economy
1. The universe of TNCs is large, diverse and expanding.
2. Some TNCs are bigger than countries. 3. The largest TNCs remain
geographically concentrated in a few home countries.
What is globalization?
The shift towards a more integrated and interdependent world economy Two components:
The globalization of markets The globalization of production
In 1984
Our definition of TNCs
An enterprise has substantial direct investment in foreign countries and actively manages those operations and regards those operations as integral parts of the company both strategically and organizationally.
TNCs Management
Formulation of strategies and management systems to take advantage of international opportunities and respond to international threats
The Transnationality Index is calculated as the average of the following three ratios: foreign assets to total assets, foreign sales to total sales and foreign employment to total employment.
In 1973
How has the United Nations defined the TNC?
an enterprise (a) comprising entities in two or more countries, regardless of the legal form and fields of activity of those entities, (b) which operates under a system of decision-making permitting coherent policies and a common strategy through one or more decisionmaking centers, (c) in which the entities are so linked, by ownership or otherwise, that one or more of them may be able to exercise a significant influence over the activities of the others, and, in particular, to share knowledge, resources, and responsibilities with others.
Other measures of transnationality
The Internationalization Index (II) is the ratio of a TNC’s foreign affiliates to total affiliates
The Geographical Spread Index (GSI) , is calculated as the square root of the Internationalization Index multiplied by the number of host countries.
Many firms offer a standardized product worldwide.
跨国公司管理1
2020年8月13日星期四
ቤተ መጻሕፍቲ ባይዱNTRODUCTION
Transnational Corporation
How has the United Nations defined the TNC?
an enterprise such as one “which controls assets, factories, mines, sales offices, and the like in two or more countries.”
Globalization of Markets
“Merging of historically distinct and separate national markets into one huge global marketplace.”
The needs of customers for many products and services are growing more similar. And customers search the world for their supplies regardless of national boundaries.
Transnationality Index
TNI
The degree of transnationality – a measure of the relative economic importance of foreign affiliates in total economic activity