经济商务ppt课件.pptVIP

7. Transnational Corporations l) Name and Features of Transnational Corporations ( 1) Name of Transnational Corporations ln the second half of the twentieth century, international business has become an important economic force. Today few, if any, countries are economically self-sufficient. In the developed countries, international business touches people’s lives daily. If international business is the process of conducting business across national boundaries, then transnational corporations are the principals in this activity. They are, so to speak, the actors or players in the international business “game”. Transnational corporations are among the world’s biggest economic institutions. A rough estimate suggests that the 300 largest TNCs own or control at least one-quarter of the entire world’s productive assets, worth about US $5 trilliion. TNCs total annual sales are comparable to or greater than the yearly gross domestic product (GDP) of most countries (GDP is the total output of goods and services for final use by a nation’s economy). (2) Features of Transnational Corporations (TNC) Because transnationality has many dimensions and can be viewed from several perspectives ---economic, political, legal, etc., TNC has the following features: 1)Ownership criterion: Some argue that ownership is the key criterion. A firm becomes transnational only when the headquarter of the firm or parent company is effectively owned by nationals of two or more countries. However, by ownership test, very few transnational corporations can be called transnational corporations. 2)Nationality mix of headquarters managers: An international company is transnational if the managers of the parent company are nationals of several countries. Usually, managers of the headquarters are nationals of the home country. This may be a traditional phenomenon. However, very few companies pass this test currently. 3). Business strategy Generally speaking, it is to reali