Airbus Case Mnc

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NATIONAL UNIVERSITY
INTERNATIONAL UNIVERSITY
SCHOOL OF BUSINESS

WORLD ECONOMIC GEOGRAPHY
SUBJECT: TRANSNATIONAL CORPORATION

Teacher : Dr Lê Thị Kim Chuyên
Group members:
1. Nguyễn Thị Cẩm TúBAFNIU10360
2. Nguyễn Hoàng QuỳnhBABAIU10118
3. Lê Trần Mỹ ThuậnBAFNIU10279
4. Bùi Minh KhaBAFNIU10321
5. Nguyễn Thị Phương TrangBAFNIU10314
6. Võ Thị Lê QuỳnhBABAIU10108
7. Phan Khả DoanhBABAIU10012
8. Hồ Ngọc Thiên NhiBABAIU10050
9. Nguyễn Thị Thu HươngBABAIU10027

CONTENT
I. TRANSNATIONAL CORPORATION
1. Definition3
2. History of TNCs
a) From the origin to the second world war4
b) 1945 to present5
3. Advantages of TNC6
4. Disadvantages of TNC9
II. CASE STUDY: “AIRBUS”
1. Historical background:
a) Brief introduction10
b) Going global11
* Internalization11
* Network 11
2. Advantages
a) Global production 12
b) Global market14
3. Problem in project “ A380”
a) Face larger damage than other corporations14
b) Hard to maintain coherence &cohesion14
c) Trust problem15
III. REFERENCES13

I. TRANSNATIONAL CORPORATION (TNCs)
1. Definition :
A transnational corporation (TNC) is a firm owns and controls production facilities in several countries. In another way, a transactional corporation is any enterprise that undertakes foreign direct investment, owns or controls income gathering assets in more than one country, produce goods and services outside its country of origin or engage in international production. Many TNCs are much richer than entire countries in the less developed world. Nowadays, TNC is one of the most popular processes which used in companies’ process. Those corporations have become some of the most powerful economic and political entities in the world today. Transnational Corporations exert a great deal of power in the globalized world economy. Many corporations are richer and more powerful than the states that seek to regulate them. Through mergers and acquisitions corporations have been growing very rapidly and some of the largest TNCs now have annual profits exceeding the GDPs of many low and medium income countries. This page explores how TNCs dominate the global economy and exert their influence over global policymaking. Such companies can provide work and enrich a country's economy - or some say they can exploit the workers with low pay and destroy the environment. Examples of TNCs included: Nestlé, Unilever, Cadbury-Schweppes, BP-Amoco..

2. History of TNCs:
a) From the origin to the second world war:
The earliest historical origins of transnational corporations can be traced to the major colonising and imperialist ventures from Western Europe, notably England and Holland, which began in the 16th century and proceeded for the next several hundred years. During this period, firms such as the British East India Trading Company were formed to promote the trading activities or territorial acquisitions of their home countries in the Far East, Africa, and the Americas. The transnational corporation as it is known today, however, did not really appear until the 19th century, with the advent of industrial capitalism and its consequences: the development of the factory system; larger, more capital intensive manufacturing processes; better storage techniques; and faster means of transportation. During the 19th and early 20th centuries, the search for resources including minerals, petroleum, and foodstuffs as well as pressure to protect or increase markets drove transnational expansion by companies almost exclusively from the United States and a handful of Western European nations. Sixty per cent of these corporations' investments went to Latin America, Asia, Africa, and the Middle East. Fuelled by numerous mergers and acquisitions, monopolistic and oligopolistic concentration of large transnationals in major...
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