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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.

Journals

 

Academy of Management Journal

https://aom.org/research/journals/journal

 

IEEE Internet of Things Journal

https://ieee-iotj.org/

 

IEEE Wireless Communications

https://www.comsoc.org/publications/magazines/ieee-wireless-communications

 

International Journal of Media Management

https://www.tandfonline.com/journals/hijm20

 

Journal of Broadcasting and Electronic Media

https://www.tandfonline.com/journals/hbem20

 

Journal of Media Business Studies

https://www.tandfonline.com/journals/romb20

 

Journal of Media Economics

https://www.tandfonline.com/journals/hmec20

 

 

Technology Magazines and Websites

 

C/net

https://www.cnet.com/

IEEE Spectrum

https://spectrum.ieee.org/

 

MIT Technology Review

https://www.technologyreview.com/

 

TechCrunch

https://techcrunch.com/

 

Wired Magazine

https://www.wired.com/

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