Geography 2420A/B Lecture Notes - Lecture 8: Network Governance, Research And Development, Coopetition
21 Dec 2019
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Lec 8 global competition corporate entity from its hqs. Control & coordinate subsidiary / single largest buyer of outputs from other firms. Often viewed simply as an organizational "black box" that coverts inputs into outputs. Denounced possible influence of particular places on formation and behavior of tnc. As tnc globalized, difficulties in holding eveyrhing together w/ in a single. Perceived to have the managerial & organizational power to operate world-wide. Only a standardized and efficient form of business & organization will survive. Sanyo e. g. nokia buys lithium bateriest from supplier. 3 kinds of tncs organizing units (1. intra-firm relationships: corporate & regional hqs: nerve centers of tncs formulate strategies & make decisions, research & development (r&d) facilities: both manufacturing & service; keep tnc competitive. Location of r&d facilities is critical to continuously developing new products. Globally concentrated production: resource extraction & manufacturing industries. Host-market production structure: subsidiary located in host country, preferred when there"re barriers to trade in host countries.
