Transnational Companies and Globalization. Benefits and Costs

Radulescu Magdalena ()
Additional contact information
Radulescu Magdalena: University of Pitesti, Romania

Ovidius University Annals, Economic Sciences Series, 2012, vol. XII, issue 2, 77-82

Abstract: TNCs have several advantages over local firms in using new technologies for export activity. They have large internal reserves of skill, technical support, experience and finance to design and implement the learning process. They have access to major export markets, established marketing channels and well-known brand names. They can transfer particular components or processes from a production chain to a developing country and integrate it into an international system. Such supply-side upgrading needs government support. Moreover, a policy to induce TNCs to enter more advanced activities by offering such incentives as specialized infrastructure and skills can accelerate the upgrading process. With a completely passive policy, TNC exports can remain at low, technologically too small, levels. Thus, a TNC dependent export strategy needs a proactive element for dynamic competitiveness. More important, an FDIdependent strategy is not a substitute for building domestic capabilities.

Keywords: TNCs; benefits; costs; Asian countries; FDIs. (search for similar items in EconPapers)
JEL-codes: F21 F23 F43 F62 F63 (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations:

Downloads: (external link)
http://stec.univ-ovidius.ro/html/anale/ENG/cuprins%20rezumate/volum2012p2v2.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ovi:oviste:v:xii:y:2012:i:2:p:77-82

Access Statistics for this article

Ovidius University Annals, Economic Sciences Series is currently edited by Spatariu Cerasela

More articles in Ovidius University Annals, Economic Sciences Series from Ovidius University of Constantza, Faculty of Economic Sciences Contact information at EDIRC.
Bibliographic data for series maintained by Gheorghiu Gabriela ().