internationalisation and multinational corporations Flashcards

1
Q

what are the three ways that tncs are now larger

A

assets and sales,
geographical coverage,
employment

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2
Q

how have tncs changed in terms of nationality

A

decline in us stranglehold

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3
Q

tncs are more integrated into the _______ ______

A

financial system

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4
Q

why would companies go global (3 reasons)

A

access to raw materials,
access to the market,
access to cheap labour

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5
Q

why have life cycles of products become shorter

A

intensified competition,
innovation leading to new products (iphone),
fashion,
rise in services (immediate)

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6
Q

how do tncs maximise their productivity of labour

A

exploiting skilled and unskilled workers (mainly female in export processing zones),
using international subcontractors,
use of home workers,
government incentives

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7
Q

what was happening for multinationals in latin america in terms of the oli paradigm 1960-1982

A
industries nationalised,
local ownership encouraged,
investment restricted,
limits on profit remittance,
(location advantages not present so firms did not invest)
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8
Q

what was happening for multinationals in latin america in terms of the oli paradigm 1982-1990

A

growing local markets for goods and services (location),
proprietary technology and marketing skills (ownership),
production of low-value goods and locally specific parts within latin america (internationalisation)

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9
Q

talk about the ‘global corporation’

A
very large organisations,
fully developed internal market,
control decentralised,
based on global profit making strategies,
aim for global market
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10
Q

what has the economist recently said about multinational companies

A

“multinational companies… financial performance has slipped so that they are no longer outstripping local firms”

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11
Q

in the past five years what has happened to multinational companies (global corporations)

A

profits down 25%,
returns on capital have slipped to their lowest in two decades,
40% of all multinationals make a return on equity of less than 10%

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12
Q

reasons for global corporations in decline

A

retreat of us corporations (ford gm),
competition (europe, asia, china),
production networks confined to regions (integrated production networks),
diversified markets (within and between world regions)

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13
Q

what does rde stand for

A

rapidly developing economies

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14
Q

what are the strategies for rapidly developing economies

A

rapidly growing domestic economies (markets),
low-cost resources (labour, energy),
key suppliers for ‘western’ MNCs

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15
Q

features of TNCs

A

control activity in more than one country,
take advantage of geographical differences between countries and regions,
have geographical flexibility

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16
Q

what does production chain include

A

all stages of the products or services life

17
Q

what does each link of the production chain do

A

adds value

18
Q

are links in the production chain internal or external to the firm

A

links may be all internal to the firm, or involve external links with independent firms (likely to be combinations of internal/external

19
Q

incremental innovations d

A

small-scale, progressive modifications of existing products and processes, although individually small they accumulate over a long period of time to create highly significant changes

20
Q

radical innovations d

A

discontinuous events that drastically change existing products or processes

21
Q

changes of technology system d

A

extensive changes in technology that impact upon several existing parts of the economy, as well as creating entirely new sectors

22
Q

changes in the techno-economic paradigm d

A

truly large-scale revolutionary changes embodied in new technology systems, these have such large effects on the economy as a whole that they change the style of production and management throughout the system