Managing transnational firms

Abstract

The phenomenon of multinationals and their behavior is vital in the formulation of policy towards multinationals, as well as the trade policy in general. The understanding of this phenomenon will prove to be useful in strategy formulation in a liberalized regime and an environment of heightened competition. In this paper we have tried to undertake an exhaustive of various theories of firm. These include the traditional theories as well as theories explaining internationalization of firm. We have attempted to study joint venture one of the primary and secondary dates collected on the alliance we see that in practice the JVs are influenced by many external environmental factors like government regulations market uncertainty etc. which are not taken into account by the firm theories. Still resource based theories and eclectic theories have limited application in explaining strategies which MNCs like Hero Honda followed in the past.