Revisiting Transnational Corporations’ Literature: The Implicit Emphasis on Spatial Reflections

Abstract

This paper aimed to explore the different approaches to Transnational Corporations (TNC) with implicit emphasis on their spatial reflections. For this aim, major studies in the subject were examined according to their main concerns which were namely monopolistic advantage, internalization advantage and others (global dynamics, innovation, entrepreneurship and etc.). These studies were broadly consistent in concluding that the earlier ones on TNCs and their FDI were mostly firm-based studies and given emphasis to the monopoly and internalization advantages without taken into consideration spatial conditions. The studies realized after the 1970s were started to discuss about different factors in affecting FDI. A special emphasis was given to the locational characteristics of the host countries, i.e. natural resources, raw material, distance from the market, cheap labour power, unsupplied market. The changing dynamics of the global economy last four decades dictates that TNCs have to adjust their strategy and structure to better fit with the competitive environment, which can be understood from the studies realized in these years. In spite of the increased mobility in every aspect of our life and discussions on “annihilation of space by time”, it was interesting to see an increase in the studies mainly concerned spatial dependency of TNCs.

 

Key Words: Foreign Direct Investment, Transnational corporations, Location, Globalization.

Keywords

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