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The Transnational Media Corporation

The transnational media corporation (TNMC) is a nationally based company with overseas operations in two or more countries.  One distinctive feature of the TNMC 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. 

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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.  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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