Transnational Corporation (TNC) Networks

1602 WordsJun 16, 20187 Pages
The term of Transnational Corporation (TNC), as its name suggests, is a reference to a firm whose influence is not limited to a single nation. “A transnational corporation is a firm that has the power to coordinate and control operations in more than one country” (Dicken, 2011, p. 110). This influence can take many forms such as subsidiaries or production facilities in other countries, but ownership is not mandatory for a corporation to have sway in another country. A TNC could gain power in a country other than its home through connections to suppliers or through the act of outsourcing (Stevis, Transnational Corporations, 2013). These connections also hint at an idea, suggested by Dicken, that in many ways TNCs are “Networks within…show more content…
There are multitudes of roles that states can fill; which they are called upon to undertake can depend on the type of capitalism and the wishes of the administration currently in power. One of the most common roles of a state is to function as a regulator over the economy. Under this role, states can provide structure to help support stable and functioning markets, such as providing the means to protect property rights; regulations can also be used to restrict certain forms of trade, or to see that a certain issue that is important to the population of the country is addressed (Stevis, Roles of Sates, 2013). Beyond this basic role, states can also act as both Collaborators and Competitors towards private firms. States can collaborate to help bring a certain firm to the country, or to help others compete in a certain market in the world political economy through subsidies and other benefits (Stevis, Roles of Sates, 2013). States, however, can play the reverse role by competing against a firm or market. This can take the form of both direct competition, such as through state-owned enterprises, or more indirect methods, subsidizing an opposing industry (Stevis, State Capitalism, 2013). Relationship of States and TNCs Like the variance in the roles many states take on, the interactions of states and TNCs can differ greatly. While it depends significantly on the form of capitalism the state adheres to, the
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