Theories of Foreign Investment and Transnational Behaviour
The description of TNCs advanced in the previous chapter may already have suggested many of their prominent characteristics. Such a description is, however, not sufficient to provide an explanation of why firms expand abroad and are concentrated in certain industries, nor of how they react to each other’s moves and to the demands of increasing size. It will be useful for our purpose to review briefly the existing literature on this, using the classification of approaches—economic, organisational and motivational—adopted in the last chapter, and to highlight their main features, which to a large extent determine their effects on developing host economies.
KeywordsLarge Firm Market Power Foreign Investment Direct Investment Joint Venturis
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