Multinational Corporations

Question 1

What are the dependency theories of multinational corporations (MNCs)?

Answer 1

MNCs represent global capitalist system
Co-opt the core of the periphery
Keeps the south in a dependent position
Development is for the benefit of the core

Question 2

What does the mercantilism approach say about MNCs?

Answer 2

MNCs are linked to particular states
MNCs provide access to resources, promote liberal ideology, fund (para)military groups, political influence
Any development is incidental (MNCs promote the national interest of this home state)

Question 3

Why do MNCs go abroad: OLI?

Answer 3

Ownership (patents, management, marketing, access to capital)
Location (convergence of advantages, political stability)
Internalization coordinate (production within the firm; vertical integration)

Question 4

What are the strategies for going abroad?

Answer 4

Resources seeking (you can spend either horizontally (MPA) or vertically)
Market seeking (meet local requirements)
Cost reducing (move to another place and have cheaper access to resources and capital)
Strategic asset-seeking

Question 5

What does relative power consist of?

Answer 5

Resources
Location specific nature
Regulatory capacity

Question 6

What are the BITs?

Answer 6

Bilateral Investment Treaties

Question 7

What are the TRIPs?

Answer 7

Trade Related Intellectual Property Rights

Big reason as to why the WTO was created

Question 8

What are the TRIMs?

Answer 8

Trade Related Investment Measures

Investment services

Question 9

What are free trade agreements?

Answer 9

Creating free trade zones

Question 10

What is FIPA?

Answer 10

Foreign Investment Protection Agreements

Creates legal personality for external actors within a state

Question 11

What are the criticisms of MNCs?

Answer 11

Political interference
Health and environment
Human rights
Culture and lifestyle