Why Transnational Corporations
Consider a firm with production facilities in various countries - a transnational corporation (TNC). The problem to be discussed in this paper is : why are there such firms? The analysis is essentially theoretical. It attempts to develop a general approach to the problem by drawing upon a critical evaluation of what Hood and Young (1979) call the "orthadox" literature on TNC's. No attempt is made to empirically verify conclusions, and there is no consideration of the so-called "radical" literature on TNC's. Both of these issues await a subsequent treatment. The aim is to examine some of the deficencies in the orthadox theoretical literature on TNC's, suggest improvements, and thus formulate a general approach to the problem "why TNC's?".
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