The term of Transnational Corporation (TNC), as its name suggests, is a reference to a firm whose influence is not limited to a single nation. “A transnational corporation is a firm that has the power to coordinate and control operations in more than one country” (Dicken, 2011, p. 110). This influence can take many forms such as subsidiaries or production facilities in other countries, but ownership is not mandatory for a corporation to have sway in another country. A TNC could gain power in a country other than its home through connections to suppliers or through the act of outsourcing (Stevis, Transnational Corporations, 2013).
These connections also hint at an idea, suggested by Dicken, that in many ways TNCs are “Networks within Networks.” Specifically, Dicken writes that TNCs are “structured through a myriad of complex relationships, transactions, exchanges, and interactions” (Dicken, 2011, p. 121). These networks, as suggested previously, can be both internal and external in nature, occurring with both entities owned by the TNC directly as well as suppliers and outside firms; they are also not limited to a specific GPN (Stevis, TNCs as "Networks Within Networks", 2013).
Transnational Corporations are viewed by many to be forces of both globalization and globality; this outlook seems to be accurate and the impacts TNCs can, and do, have are examples of this. At their core, many TNCs are formed through the usage of corporate trends that are global in nature. From outsourcing labor-intensive production to countries with more beneficial wages to creating a new Research and Development facility in a highly educated region of a different country, such actions taken by TNCs improve the global nature of the WPE by helping to build new connections between different countries and regions.
In terms of globalization, TNCs are not as restricted by the traditional idea of country boundaries and can more easily access other markets beyond their home countries. As an example, a TNC can use revenue from a foreign subsidiary to invest in another firm in a third country to open up a new market. In this case the capital used in the investment never had to cross the TNC’s home country’s borders and deal with any regulations that may have been involved with that.
For our use, a State is the governing structure found within a country. More specifically, the State is the institutions, bureaucracy, and other aspects of a country that remain between changes in the administration (Stevis, The "State", 2013). States’ have their own momentum, based on their histories, and it can be very difficult for those elected into government, or new administrations, to alter the path of a state in a significant way, which can limit what is possible for the administration to achieve.
The capitalistic institutions of states can vary greatly from state to state; there are, however, a number of general categories. Neo-Liberal Market, seen in the United States, is one...