We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Transnational Corporation Assignment Essay Sample

essay
The whole doc is available only for registered users OPEN DOC

A limited time offer!

Get a custom sample essay written according to your requirements urgent 3h delivery guaranteed

Order Now

Transnational Corporation Assignment Essay Sample

(Chapter 5, Question 4) Drawing on the theory of comparative advantage to support your arguments, outline the case for free trade. According to the theory of comparative advantage, a country should specialize in the production of goods that it is good at producing, and buy the goods from another country that it is less efficient at producing. Therefore if country X can produce product A more efficiently than product B, while country Y can produce product B more efficiently than product A, then they should trade (even in the situation wherein country X has an absolute advantage over country Y in producing both product A and product B). Country X should sell country Y product A and buy product B from country Y. Both country will benefit from trade in this situation.

(Chapter 7, Question 5) Explain how the politics of a host government might influence the process of negotiating access between the host government and a foreign MNE. The permissiveness or restrictiveness on the part of the host country toward FDI will have a big impact on the outcome of the negotiation between the host government and a foreign MNE. For example, in the case the host government is very interested on what the foreign firm has to offer, then the MNE bargaining power will be high. On the contrary, if the host country is lukewarm on what the foreign firm has to offer, then MNE bargaining power will be low. Also, if the options open to the MNE are many and time is not critical (the MNE can afford delays), then the MNE will be in a very strong position to negotiate to get the best deal.

References

1.Globaltrade.net, 2012. Globaltrade.net. [Online] Available at: http://www.globaltrade.net/international-trade-importexports/f/business/text/Egypt/Business-Environment-Doing-Business-in-Egypt.html [Accessed 11 November 2012].

We can write a custom essay

According to Your Specific Requirements

Order an essay
Get Access To The Full Essay
icon
300+
Materials Daily
icon
100,000+ Subjects
2000+ Topics
icon
Free Plagiarism
Checker
icon
All Materials
are Cataloged Well

Sorry, but copying text is forbidden on this website. If you need this or any other sample, we can send it to you via email.

By clicking "SEND", you agree to our terms of service and privacy policy. We'll occasionally send you account related and promo emails.
Sorry, but only registered users have full access

How about getting this access
immediately?

Become a member

Your Answer Is Very Helpful For Us
Thank You A Lot!

logo

Emma Taylor

online

Hi there!
Would you like to get such a paper?
How about getting a customized one?

Can't find What you were Looking for?

Get access to our huge, continuously updated knowledge base

The next update will be in:
14 : 59 : 59
Become a Member