World Investment Report 1993

Transnational Corporations and Integrated International Production

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There are over 37,000 transnational corporations in the world with over 170,000 foreign affiliates. This report presents for the first time ever data on the largest 100 non-financial transnational corporations ranked by foreign assets. It describes and analyses the continuing expansion of transnational corporations, the regionalization and globalization of firms, the emergence of an integrated international production system and some legal and policy implications of these developments. The wealth of information presented is complemented by over 80 statistical tables and charts related to the operations of transnational corporation.



Organizational structures of Transnational corporations

As strategies of transnational corporations (TNCs) change, so do their organizational structures. The traditional structure is based on stand-alone strategies involving affiliates linked to their parent firms via ownership and the supply of technology. The flow of resources and the functional links between parents and affiliates are limited. Decision-making lies mainly with the managers of each affiliate. Reporting arrangements are hierarchical: the top manager in each affiliate is in charge of operations and reports to the head of an international division and/or product division of the parent firm.


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