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Theoretical Perspectives on the Transnational Corporation
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As the Indian Government battles a difficult fisc, it is trying to increasingly withdraw from active economic participation. In order to don the mantle of facilitator and regulator. In this liberalized environment, focus is on the ability of the private sector and by corollary, on that of the Transnational Corporation (TNC)., to help in achieving India's developmental objectives. Keeping in mind both India's commitments to the WTO and the competitive readiness of its economic dispensation. A coherent policy framework for India will have to address the following issues: ( i ) the acceptance of a broad political consensus on the role of the private sector in general, and that of the TNC in particular; ( ii ) a focused direction to TNC activity for optimizing economy wide benefits; (iii) built-in institutional mechanisms to minimize drawbacks of private sector and of TNC functioning; ( iv ) active role of the Government as policy maker. Regulator and facilitator of the growth process. In this context it is vital, therefore, to understand the organizational form of the firm and in an international context, its functioning in a host country environment.
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