IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/75810.html

Транзакционен Модел На Транснационалната Корпорация: Тестване В Условията На Българския Пазар
[A Transaction Cost Model of the Multinational Corporation: Testing in the Bulgarian Market Conditions]

Author

Listed:
  • Todorova, Tamara

Abstract

The multinational corporation is revealed as a complex hierarchical structure comprising subsidiaries in the different national and regional markets and having the task of supplanting these markets when the costs of organizing transactions on those exceed the costs of internal organization. The multinational corporation is geographically dispersed in various international markets and is subject to different degrees of internal hierarchy and centralism. It faces magnificent transaction costs in its world operations. Some sources of these high transaction costs are the geographical distance among factors of production, the peculiarity and complexity of international transactions, as well as the unique conditions of different markets. The multinational corporation owes its emergence to the development of communications and the improvement of world transport which bring world production factors closer and turn the MNC into a cheaper instrument of resource allocation than the world market.

Suggested Citation

  • Todorova, Tamara, 2000. "Транзакционен Модел На Транснационалната Корпорация: Тестване В Условията На Българския Пазар [A Transaction Cost Model of the Multinational Corporation: Testing in the Bulgarian Market Conditions]," MPRA Paper 75810, University Library of Munich, Germany, revised May 2000.
    • Handle: RePEc:pra:mprapa:75810
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/75810/1/MPRA_paper_75810.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Alchian, Armen A & Demsetz, Harold, 1972. "Production , Information Costs, and Economic Organization," American Economic Review, American Economic Association, vol. 62(5), pages 777-795, December.
    2. Dahlman, Carl J, 1979. "The Problem of Externality," Journal of Law and Economics, University of Chicago Press, vol. 22(1), pages 141-162, April.
    3. Lall, Sanjaya, 1980. "The international automotive industry and the developing world," World Development, Elsevier, vol. 8(10), pages 789-812, October.
    4. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    5. Williamson, Oliver E, 1983. "Organization Form, Residual Claimants, and Corporate Control," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 351-366, June.
    6. Peter J. Buckley & Mark Casson, 1991. "The Future of the Multinational Enterprise," Palgrave Macmillan Books, Palgrave Macmillan, edition 0, number 978-1-349-21204-0, December.
    7. Telser, Lester G & Higinbotham, Harlow N, 1977. "Organized Futures Markets: Costs and Benefits," Journal of Political Economy, University of Chicago Press, vol. 85(5), pages 969-1000, October.
    8. Barzel,Yoram, 1997. "Economic Analysis of Property Rights," Cambridge Books, Cambridge University Press, number 9780521597135, February.
    9. Nicholas Kaldor, 1934. "A Classificatory Note on the Determinateness of Equilibrium," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 1(2), pages 122-136.
    10. Kojima, Kiyoshi, 1973. "Reorganisation of North-South Trade : Japan’s Foreign Economic Policy for the 1970s," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 13(2), pages 1-28, February.
    11. Raymond Vernon, 1966. "International Investment and International Trade in the Product Cycle," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 80(2), pages 190-207.
    12. Masahiko Aoki, 2013. "Toward an Economic Model of the Japanese Firm," Chapters, in: Comparative Institutional Analysis, chapter 18, pages 315-341, Edward Elgar Publishing.
    13. Nelson, Philip, 1974. "Advertising as Information," Journal of Political Economy, University of Chicago Press, vol. 82(4), pages 729-754, July/Aug..
    14. Eggertsson,Thrainn, 1990. "Economic Behavior and Institutions," Cambridge Books, Cambridge University Press, number 9780521348911, January.
    15. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 488-500.
    16. Matthews, R C O, 1986. "The Economics of Institutions and the," Economic Journal, Royal Economic Society, vol. 96(384), pages 903-918, December.
    17. Murtha, Thomas P, 1991. "Surviving Industrial Targeting: State Credibility and Public Policy Contingencies in Multinational Subcontracting," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 7(1), pages 117-143, Spring.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tamara Todorova, 2020. "Multinational Corporations and Transaction Costs," EconSciences Library Books, EconSciences Library Books, edition 1, number 978-605-7736-99-4.
    2. Tamara Todorova, 2004. "The Firm in the Context of the Theory of Transaction Costs," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 55-74.
    3. Todorova, Tamara, 2000. "Транснационални Корпорации И Транзакционни Разходи [Multinational Corporations and Transaction Costs]," MPRA Paper 75798, University Library of Munich, Germany, revised 2000.
    4. Matyukha, Andriy, 2017. "Business groups in agriculture impact of ownership structures on performance: The case of Russia's agroholdings," Studies on the Agricultural and Food Sector in Transition Economies 254051, Institute of Agricultural Development in Transition Economies (IAMO).
    5. repec:eee:labchp:v:2:y:1986:i:c:p:789-848 is not listed on IDEAS
    6. Mahoney, Joseph T., 2012. "Towards a Stakeholder Theory of Strategic Management," Working Papers 12-0100, University of Illinois at Urbana-Champaign, College of Business.
    7. Matyukha, Andriy, 2017. "Business groups in agriculture. Impact of ownership structures on performance: The case of Russia's agroholdings," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 85, number 85, February.
    8. Dahlstrom, Robert & Nygaard, Arne, 2010. "Epilogue: Popperian Perspectives on Transaction Cost Economics and Future Directions of Empirical Research," Journal of Retailing, Elsevier, vol. 86(3), pages 284-290.
    9. Klein, Peter G. & Mahoney, Joseph T. & McGahan, Anita M. & Pitelis, Christos N., 2012. "Who Is in Charge? A Property Rights Perspective on Stakeholder Governance," Working Papers 12-0102, University of Illinois at Urbana-Champaign, College of Business.
    10. Céline CARRERE & Marco FUGAZZA & Marcelo OLARREAGA & Frédéric ROBERT-NICOUD, 2016. "On the heterogeneous effect of trade on unemployment," Working Papers P180, FERDI.
    11. Todorova, Tamara, 2022. "Оливър Уилямсън: Новатор На 20 Век И Основател На Новата Институционална Икономика [Oliver Williamson: an innovator of the 20th century and founder of the new institutional economics]," MPRA Paper 121077, University Library of Munich, Germany.
    12. Reddy, Kotapati Srinivasa, 2016. "Institutional Voids and Tax litigation in Emerging Economies: The verdict of Vodafone cross-border acquisition of Hutchison," MPRA Paper 74264, University Library of Munich, Germany, revised 2016.
    13. Jongwook Kim & Joseph T. Mahoney, 2002. "Resource-based and property rights perspectives on value creation: the case of oil field unitization," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 23(4-5), pages 225-245.
    14. Matthias Kiefer & Edward Jones & Andrew Adams, 2016. "Principals, Agents and Incomplete Contracts: Are Surrender of Control and Renegotiation the Solution?," CFI Discussion Papers 1603, Centre for Finance and Investment, Heriot Watt University.
    15. Iavor Marangozov, 2005. "From Practice to Theory of the International Joint Ventures," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 44-77.
    16. Olivier Meier & Aurélie Sannajust, 0. "The smart contract revolution: a solution for the holdup problem?," Small Business Economics, Springer, vol. 0, pages 1-16.
    17. Reddy, Kotapati Srinivasa, 2015. "Extant Reviews on Entry-mode/Internationalization, Mergers & Acquisitions, and Diversification: Understanding Theories and Establishing Interdisciplinary Research," MPRA Paper 63744, University Library of Munich, Germany, revised 2015.
    18. Kovac Mitja & Elkanawati Amira & Gjikolli Vita & Vandenberghe Ann-Sophie, 2020. "The Covid-19 pandemic: collective action and European public policy under stress," Central European Journal of Public Policy, Sciendo, vol. 14(2), pages 47-59, December.
    19. J. van Oosterhout & P.P.M.A.R. Heugens & S.P. Kaptein, 2003. "The Internal Morality of Contacting: Redeeming the Contractualist Endeavor in Business Ethics," Working Papers 03-15, Utrecht School of Economics.
    20. Xie, En & Reddy, K.S. & Liang, Jie, 2017. "Country-specific determinants of cross-border mergers and acquisitions: A comprehensive review and future research directions," Journal of World Business, Elsevier, vol. 52(2), pages 127-183.
    21. Jankovic Ivan & Block Walter, 2019. "Private Property Rights, Government Interventionism and Welfare Economics," Review of Economic Perspectives, Sciendo, vol. 19(4), pages 365-397, December.

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:75810. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.