1.Summary
Multinational corporations (TNC) are the focus of discussions on economic globalization. Nonetheless, the universal opinion is that we are increasingly influenced by the influence of global corporations irrespective of national boundaries and declining national autonomy. This can be stereotypes and biases. The chapter focuses on five related issues: (1) the scale and geographical distribution of TNCs in the global economy; (2) why and how corporations engage in transnational activities; (3) the geographical embeddedness of transnational corporations; (4) the ‘webs of enterprise’ manifested in transnational production networks; (5) the power relationships between TNCs and other actors in the global economy.
The world 's first overseas company to develop was Hudson' s Bay Company which appeared after the 15th century. They are clearly the beginning of today's global trade and services. However, this overseas expansion in the manufacturing industry is in the late 19th century. In addition, it has been working as a research and development engineer in the field of computer science and engineering. A comprehensive definition of the TNC is possible, but it is impossible to quantify it in aggregate terms. This is because it involves a number of qualitative attributes related to complex relationships. UNCTAD (2004: 8) estimates that around 61,000 TNCs currently carry out international production in over 900,000 foreign currencies. It accounts for about 10% of world total production and generates 33% of global exports. These are called global corporations. It operates worldwide and is not limited to a specific country. The number of TNCs is increasingly concentrated in developing countries and there is no doubt that they are growing. Respectively.
The reason why these global companies are expanding their business outside their home is very complex and incidental. However, TNC activities can be divided into two categories: (1) market-oriented investment and asset. Market-oriented investment is an investment in which the size and nature of the market affects the decisions of the global enterprise. Asset-oriented investment is related to geographic disparities in the market. The sale of products and services has been determined in relation to geographical location because it is geographically dispersed and not very uniform.
There are two major ways in which firms develop transnational activities: one is through what is known as 'greenfield' investment, the other is through engagement with other firms, through either merger and acquisition or some form of strategic collaboration. 'Greenfield' investment is generally the most preferred type of host country. It is not a common method, but it has the disadvantage that when you go overseas, a completely new building is dangerous. So, many firms, particularly US and UK firms, have preferred to merge with, or acquire, another firm to establish, or expand, their presence in a particular overseas location. Most of the global FDI growth in recent years has been driven by M & A and has been centered on Greenfield investment until the late 1990s, but M & A has declined since 2000. Another widely used mode of TNC expansion is to enter into a strategic collaboration with one or more. A lot of companies are forming not just single alliances but networks of alliances, in which relationships. In effect, they are creating 'new constellations' of economic power.
In this chapter, the focus is on the enterprise, but in fact it is inappropriate. Organizations are considered to be distinct and independent. On the contrary, every business enterprise is very complex and dynamic. TNCs are generally regarded as 'high density networks of enterprises' as they are companies. Precisely how a TNC's internal networks are configured, both organizationally and geographically, and how they are connected into the external networks of suppliers and customers varies considerably. Such variety arises primarily from such interrelated influences as: • the firm’s specific history, including characteristics derived from its country of origin; • its cultural and administrative heritage in the form of accepted practices built up over a period of time, producing a particular ‘strategic pre-disposition’; • the nature and complexity of the industry environment(s) in which the firm operates, including the nature of competition, technology, regulatory structures and so on.
The geographical scope of a multinational production network is very diverse, and it can be said that this network is truly 'global'. A regional strategy offers many of the efficiency advantages of globalization while more effectively responding to the organizational barriers it entails. Language and cultural differences also play an important role in the demand for goods and services. Transnational corporations are primarily one of the most important companies. In the modern world, many companies are transnational, and multinational corporations exist in various forms and sizes. The TNC has a complex negotiation process due to discontinuous territory and is always uncertain and unpredictable.
2.What’s the interesting points
In the modern world, the influence of multinational corporations is powerful. Companies such as Microsoft and Apple have had tremendous global influence over the past and are perhaps more powerful than countries. It is interesting to note that the first multinational company is Hudson 's Bay Company. The first multinational corporation has been thought of as the 20th century, but it is surprising that it emerged in the 15th century. I think it has played a pioneering role in the discussion of transnational discussions since then. In addition, global companies are dominated by cultures and languages in each country and demand varies. This means that multinational corporations can not maintain the same strategy globally and that cultural differences must be considered in each country. I thought it was the most interesting thing to think about when I came up with the case of a multinational company in China.
3. Discussion
Transnational corporations have too much uncertainty and instability. In a rapidly changing society, multinational corporations are becoming more difficult to survive. In the last eight years, the global market leader, Apple, is expected to change to Microsoft. There is no such thing as absolute strength, and it is uncertain enough that the company that maintained the unexpected decline could be the number one. What is the absolute value in this world and what can solve the instability of transnational corporations?
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