Assignment for Today: Read Coe pp. 223-235 and come to class with a basic understanding of the following concepts and ideas: organizational complexity, operational risks, Transnational Corporation (TNC), business networks, production chain configuration and coordination, centralized vs decentralized production chains, internalized transactions, externalized transactions, intra-firm relationships, geographical outcomes, corporate and regional headquarters, research and development facilities, transnational operating units, types of R&D activities (internationally integrated R&D lab, locally integrated lab, support lab), types of production operations (globally concentrated production, host-market production structure, product specialization for global or regional market, transnational vertical integration, maquiladoras.

What is a TNC?

Myths of Transnational Corporation

TNC Organization and Location

• Production Chain Characteristics
  • Configuration
  • Coordination
  • Internalized Transactions
  • Externalized Transactions

Location of Intra-Firm Organizational Units

• Corporate and Regional Headquarters
• Research and Development Facilities
  • Internationally Integrated R&D
  • Locally Integrated R&D
  • Support Labs
• Production Operations
  • Globally Concentrated Production
  • Host-Market Production
  • Product Specialization for global or regional market
  • Transnational Vertical Integration

Assignment for Next Time: Read Coe 236-253 and come to class with a basic understanding of the following concepts and ideas: Inter-firm relationships, international subcontracting, ODM, OEM, industrial subcontracting, highly localized clusters, export enclaves, new international division of labor, macro-regional integration, strategic alliances, joint venture, franchising, cooperative agreements, limits to TNCs, time-space compression, Just in time, cultural barriers, anti-globalization movement.