Monday, July 29, 2019

Contrasting and Critically Examining two views Essay

Contrasting and Critically Examining two views - Essay Example One major issue in this regard is the formulation of strategic alliances by Transnational Corporations. Transnational Corporations are the large organisations which operate in different countries and focus on local preferences and demands. These organisations formulate strategies according to the needs and requirements of the local region. It is important to establish at this point that these Transnational Corporations (TNCs) have become one of the most strong unit in the economic and political setup all over the globe. These Transnational Corporations (TNCs) have been coming up with different economic strategies in order to fulfil their objectives and goals. In this regard these organisations have formed different strategic alliances and have entered into different subcontracts, which in turn are allowing them to operate successfully in the international market (Kale, P, Singh, H, & Perlmutter, 2000). This phenomenon has given rise to one of the largest dilemma in the business secto r i.e. that either global market forces have resulted in the formulation of these strategic alliances or these subcontracts and strategic alliances are being used as a strategy by these organisation in order to get hold of more resources. According to one school of thought, these economic strategies of subcontracting and strategic alliances are because of different global market forces. Transnational Organisations (TNCs) are forced to use these strategies in order to respond to the changing economic, political, social, and technological forces in the international market. On the other hand, there is a second school of thought which is of the view that these economic strategies of subcontracting and strategic alliance are being used by the Transnational Organisations (TNCs) for their own benefits. These strategies facilitate the organisations in the process of gaining more control over the resources as compared to other small companies and communities and as a result controlling the overall international economy (Gereffi, Humphrey, Kaplinsky, & Sturgeon, 2001). In this paper an attempt has been made to compare and critically review these two views. For this purpose, views of both school of thoughts have been presented and investigated. Apart from this the basic idea of Transnational Corporations (TNCs) and the associated economic strategies have also been explained. This will help in the process of exploring and critically evaluating the two views about the increasing subcontracting and strategic alliances by different Transnational Corporations (TNCs). TRANSNATIONAL CORPORATIONS (TNCs): There have been considerable growth in the number of Multinational Organisations (MNCs) or Transnational Corporations (TNCs). This is mainly because of the increasing international trade and globalisation. Owing to increasing international demand, organisations expanded their operations and businesses in different countries. This not only resulted in benefiting these organisati ons by also contributed in the growth and development of overall global economy. With the passage of time, Transnational Corporations (TNCs) became one of the essential player in the international economy. These organisations with the aim of increasing profits and revenues have been keep on exploring and exploiting different areas and regions. Recently, Transnational Cor

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