The TNC Project The Encountering of Local and Global: Assessing the Impact of TN

The TNC Project The Encountering of Local and Global: Assessing the Impact of TNCs on Their Host Economies in the Global Periphery The rise and spread of transnational corporations or TNCs are a defining feature of contemporary globalization. The central argument of Peter Dicken’s (2015) Global Shift is that the remaking of the global economy has been driven increasingly by the emergence of global production networks (GPNs), i.e., complex organizational and geographical networks of production, distribution and consumption, led by TNCs. The emergence of GPNs in the last few decades takes place within a wider free-market regime in which tariffs and non-tariff barriers to trade are now generally much lower than in the mid-twentieth century. The added advantages of cheap transportation and fast electronic communication have made it much easier to integrate production and sales on a global cost efficiency basis. Although theoretically, TNCs can inject capital into the host economy, stimulate the learning and upgrading of local firms, and create ‘good jobs’, none of these can be taken for granted. In reality, it all depends. Exploiting local labor, depleting local resources, forcing local firms to be stuck in low value-added activities, and degrading the local environment by the TNCs, especially in the global periphery, are equally possible if not more commonly found. Therefore, economic upgrading of the local economy through embracing TNCs cannot be taken for granted, and even if economic upgrading is achieved/achievable, it still may not imply a social upgrading. Through this assignment, you are expected to study one chosen TNC, with a focus on the TNC’s interaction with, and impact on, at least one of its host economies in the global periphery, i.e., localities outside of North America and Western Europe (Japan is excluded as well). This research project consists of three stages: 1) a topic choice; 2) thesis and annotated bibliography, and 3) a full report. More than anything else it is vital that you pick a corporation that interests you. Then, in addition, it is also important to pick a TNC about which you can easily find data. A TNC’s transnationalization may be for the purpose of seeking market access, sourcing efficiency, or other reasons. Relatedly, a TNC and its host economy can be engaged in several different ways, through direct investment, merger, acquisition, and outsourcing/subcontracting, etc. Your chosen TNC should have a direct operation in your chosen host economy, not thorough outsourcing, e.g., Foxconn is the manufacturing outsourcing service provider of Apple, which has no direct operation of manufacturing in China. It is also important to identify the key actors: the lead firm (TNC), local firms partnering with the TNC, local state(s), local workers and their organizations, the local community, NGOs, and so on. For each actor, it is necessary to know its relative bargaining power and the particular geo-historical context of bargaining. The local income level, labor condition, resource endowment, and state policy can all be important here. For example, other than the common factor of cheap labor, local state subsidies and tax breaks can be an important reason for the attraction of a TNC. As workers rights groups, environmentalists and ethical sourcing projects have begun to monitor TNC commodity chains and production networks more closely, the relationship between TNCs and their host economies has been changing accordingly. Your full paper should be 2500-3000 words (excluding references and illustrations). It should include a short introduction of your chosen TNC, and a brief answer to four questions: when, where, why and how has the TNC gone global. The main body of your essay is to describe and critically assess the impact of the particular TNC on one of its host economies in the global periphery. It is important to get your answers to the aforementioned why and how questions right in order to be able to carry out your critical assessment. The interaction between the TNC and its host economy should be during the last four decades or a particular period of it. Your paper should be centered on a thesis developed on the basis of your tentative argument/focus stated in the first submission. Though it is OK if you believe it is necessary to change your mind after further studies. Developing a strong thesis is crucial for the success of your essay, as aforementioned. You will receive assistance from the instructor and TA on this along the way In the main section of your paper, with a focus on your thesis, you are expected to describe the nature and mechanism of the interaction between the TNC and the host economy and the key actors involved in the process based on your research. Then you should explain why this has been the case, and discuss what could be done to make the situation better, if possible. In your conclusion, you should briefly summarize the key findings of your research project. More detailed guidelines regarding your TNC report will be provided later you will be continuing based off my two initial assignments. the first being a tnc topic choice and the second being thesis and annotated bibliography.