From United Nations University

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31. TNCs in the primary goods sector
32. TNCs in Manufacturing Activities: Export Processing Zones


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31. TNCs in the primary goods sector

31.1 Introduction
    a) an historical perspective; the significance of the primary
       sector to the total economic activity of particular
       countries

31.2 Changing elements in TNC/host country relationships
    a) host country control over natural resources

    b) alternative sources of risk capital

    c) availability of technology on market terms

    d) host country participation in production/processing/
       marketing

31.3 The primary goods sector where TNCs are active and reasons for
     same
    a) capital intensive

    b) technology intensive

    c) access to external markets

    d) distinguishing features of TNC involvement in agriculture
       (plantations), agribusiness and mineral sectors

    e) forms of ownership and control in primary sectors

31.4 Secondary processing and how to increase lva (local value added)
    a) TNC allocation of new processing capacity

    b) financing and establishing necessary infrastructure

    c) marketing processed goods
      i) developed country tariff structures
     ii) TNC control of marketing activities; intra firm trade
    iii) marketing alternatives
         - other developing country markets
         - regional schemes
         - government to government sales contracts

    d) reshaping production economies to allow smaller scale
       enterprises to compete

    e) the response of TNCs

31.5 Determinants of the bargaining process and its outcome
    a) the issues negotiated
      i) distribution of benefits
     ii) pace of exploration and exploitation
    iii) secondary processing of raw materials (i.e., local
         content of 'forward' value added)
     iv) sourcing of inputs

    b) alternative formulae for distributing gains

    c) the risks involved to TNCs and host governments

    d) new forms of involvement by TNCs in primary goods sector

    e) the role of state owned companies in LDCs

    f) the effect of transfer pricing on a) to d) above

31.6 The role of commodity associations
    a) aims

    b) ability to bargain

    c) conditions for success

31.7 The role of international agreements
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ESCAP/UNCTC(1984) McKern(1976) Oman & Rama(1986)
UNCTC(1981a, 1981b, 1982d, and 1983c)
Casson(1986)
Green(1989)    See Bibliography
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32. TNCs in Manufacturing Activities: Export Processing Zones

32.1 Introduction: the changing role of export processing activities
     in developing countries
    a) export oriented industrialization strategies in developing
       countries

    b) the reasons for and significance of TNC penetration

    c) the effects of new technological advances; a relocation of
       some TNC activities

    d) the concept of export enclaves

    e) TNC export oriented activities in developing countries

32.2 The pattern of FDI and subcontracting in export processing
     activities

32.3 Economic and social impact of TNCs in export processing zones
    a) balance of payments effects

    b) employment and working conditions

    c) technology transfer

    d) market structure

    e) linkages (n.b. depending on efficiency on the rest of the
       economy)

32.4 The costs and benefits of export zones:
    a) two industrial case studies
      i) the electronics industry
     ii) the apparel industry

    b) four regional case studies
      i) the Jakarta export processing zone
     ii) Korea's Masan free export zone
    iii) the maquila in Mexico
     iv) industrial zones in the Philippines to encourage
         Japanese export oriented investment

32.5 The impact of export processing zones on investing countries

32.6 The future of TNC operations: implications for policy of LDCs
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Moxon(1975) Moxon, Roehl and Truitt(1984)
Arpan, De La Torre, Toyne(1981)
Sklair(1989) Gonzalez Arechiga and Ramirez(1989); UNCTC(1989)
Warr(1983,1984)
UNIDO(1980) Germidis(1980)
Gruinwald & Flamm(1985)     See Bibliography

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RRojas Research Unit/1996