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1.2.2b Global production networks of TNCs connecting places within the…
1.2.2b Global production networks of TNCs connecting places within the global economy
Transnational corporations
Global presence
Dominance over world output, trade, investment, and technology
Oligopolistic nature
Enormous amount of productive assets
Networks
Footloose
Spatial organisation and hierarchical structure of TNCs
Headquarters
Corporate (global) - apex
Regional
locational requirements
Able to keep close contact with other parts of firm
Access to high quality producer services
Proximate to social and cultural amenities
geography
Sited in home countries
Sited in global cities
Prestige
Status
Agglomeration economies
Skilled workforce
R&D centres
Internationally integrated
Locally integrated
Support lab
locational requirements
Large supply of highly trained scientists, engineers, and technicians
Close proximity to universities and research institutions
High quality of living
geography
Centralisation
DCs/Home countries
Decentralisation
Asian NIEs
Branch offices
Branch plants
locational requirements
Varies, depends on specific role
geography
Geographically dispersed
Typically located in LDCs
Flows of materials and capital in GPNs
Intra-firm network
Offshoring
Horizontal & vertical integration
Inter-firm network
Subcontracting (outsourcing)
Strategic alliances
Joint ventures
Franchising
Cooperative agreements
Distribution of products - logistics
Distribution systems
Transportation terminals
Distribution centres
Electronic data interchange
E-commerce