Exam 10: The Transnational Corporationhow Does the Global Firm Keep It All Together

TNCs have substantial corporate power to negotiate and bargain with developing countries, particularly those characterized by:

These R&D facilities are oriented toward local markets and regulatory requirements that are not necessarily found in other markets.

The most spatially mobile part of a TNC's global production network is often its:

__________________ refers to an organizational form in which the TNC owner of a registered trademark or intellectual property rights agrees to let a franchisee (often outside the home country) use that trademark or rights.

This mode of international subcontracting is most common in today's electronics industry, particularly the manufacturing of personal computers, consumer electronics, and household appliances.

These are business relationships that exist between independent firms, some of which may be TNCs.

Major car makers continue to organize their transnational production networks with a great deal of:

Discuss four aspects of vertical integration as a pattern of industrial organization that are a benefit to the parent TNC. In which sectors does vertical integration persist, and why is this the case?

Firms in very ________________ industries tend to engage in inter-firm collaborations such as strategic alliances.

Most TNCs are simultaneously controlling their own intra-firm networks of foreign subsidiaries and affiliates at the same time as managing a dense web of __________________ networks.

"Co-opetition" refers to:

These are value-added activities that occur within the legal and organizational boundaries of a particular TNC.

Strategic alliances are common in industries that exhibit:

This mode of transnational production applies to some resource extraction and manufacturing industries. It does not generally work well for service industries, as services are much harder to export.

The myth of the global corporation is underpinned by its apparently:

An example of an inter-firm relationship is:

This occurs when the principal firm (the buyer) subcontracts most, if not the entire, production to another firm (the supplier) in another country.

Enclaves host ______________________ activity that forms an integral part of the global production networks of most TNCs.

International subcontracting has led to the development of enclaves of ____________________ production in developing countries.

Subcontracting is also commonly referred to as: