Transnational corporation and local capital in the Third World

Research output: Working paperDiscussion paper

Abstract

Contends that in so far as Third World firms are any different from the traditional TNCs, this is because they are at an incipient stage of their development and are not yet 'real' TNCs at all. There is, however, no reason to suppose that such firms, particularly those belonging to the large economic groups within the major new-industrializing countries, NICs, will not internationalize further in the future. If they do so, then it is to be expected that they will tend to behave in ways increasingly similar to the traditional TNCs. As far as the LDCs are concerned, there is no reason to believe that they will be significantly better or worse than traditional TNCs as agents of development. They will probably contribute to further undermine the ability and willingness of Third World states to control TNCs. As already seen in the case of India, the internationalization of local firms is linked to policy towards inward investment. In addition the growth of international operations may also undermine the state's ability to exercise control over the national economy.
Original languageEnglish
PublisherDevelopment Studies Discussion Paper - University of East Anglia
Number of pages56
Volume178
Publication statusPublished - 1985

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