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Transnational Media and Foreign Direct Investment

The Transnational Media Corporation

The transnational corporation is a nationally based company with overseas operations in two or more countries.  One distinctive feature of the transnational corporation (TNC) is that strategic decision making and the allocation of resources are predicated

upon economic goals and efficiencies with little regard to national boundaries.  The TNMC is the most powerful economic force for global media activity in the world today.  Through a process of foreign direct investment, the TNMC actively promotes the use of advanced media and information technology on a worldwide basis.  It has

become a salient feature of our present-day global economic landscape.

Foreign Direct Investment

Foreign Direct Investment (FDI) refers to the ownership of a company in a foreign country.  This includes the control of assets.  As part of  its commitment, the investing company will transfer some of its managerial, financial and technical expertise to the foreign owned company.  The decision to engage in FDI is based upon the profitability of the market, growth potential, regulatory climate and existing competitive situation.  The TNMC is arguably better able to invest in the development of new media products and services than are smaller, nationally based companies or government supported industries.  There are four reasons that help to explain why a company engages in FDI.  They include: 1) Proprietary Assets and Natural Resources 2) Foreign Market Penetration, 3) Research, Production and Distribution Efficiencies and 4) Overcoming Regulatory Barriers to Entry.

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Transnational Media and Foreign Direct Investment: Technical Briefing Paper


Suggested Readings


Albarran, A., Mierzejewska B. & Jung J. (Eds.), (2018). Handbook of Media Management                 

and Economics. 2nd ed. New York: Routledge.

Gershon R. (2020). Media, Telecommunications and Business Strategy. (3rd ed.) New York: Routledge. 


Mahoney, M. and Tang, T.  (Eds.), (2020). The Handbook of Media Management and Business.  

New York: Rowman and Littlefield.

Noam, E. (2016). Who Owns the World's Media? Media Concentration and Ownership Around the World.

New York:  Oxford University Press.

Wirtz, B. (2020). Media Management: Strategy, Business Models and Case StudiesHeidelberg, 

Germany: Springer.



Academy of Management Journal


IEEE Internet of Things Journal


IEEE Wireless Communications


International Journal of Media Management


Journal of Broadcasting and Electronic Media


Journal of Media Business Studies


Journal of Media Economics



Technology Magazines and Websites



IEEE Spectrum


MIT Technology Review




Wired Magazine