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International business in emerging markets ( ) - Essay Example
Pries L., (2001), New Transnational Social Spaces, Published by Routledge, ISBN 041523736X, 9780415237369, retrieved November 23, 2008, from http:/books.google.co.in/bookshl=en&id=KAZ_zu2wMIkC&dq=transnat%C4%B1onal+companies&printsec=frontcover&source=web&ots=lV8N8pANJ8&sig=a1DiajRYqX7YsKZyirwPNvaGaNc&sa=X&oi=book_result&resnum=5&ct=result#PPR6,M1 11
In this age of free trade and globalization, international business has evolved to occupy a very significant position in world economics. Transnational is a contemporary term synonymous to multi-national companies. Broadly speaking these transnational companies run their business in different countries of the world and plays a major role in controlling the economic assets of those countries by owning equity capital stake. Transnational companies are characterized by their enormous financial resources, vast technical resources and extensive global reach. They evolved in the late 19th century as a consequence of changing environmental forces and rising demand for global efficiency, national responsiveness and worldwide learning. (Pries L., 2001)
To get a clear picture, the organizational characteristics can be divided into three broad heads viz., configuration of assets and capabilities, role of overseas operations and development and diffusion of knowledge. TNCs or MNCs have their operations decentralized and are nationally self-sufficient. The top executives of these companies keep a keen eye on the various economies of the world and takes timely initiatives to exploit opportunities. Knowledge is developed and retained within each unit but technology is brought from the center. ...