Forms and Clusters
Forms have a competitive edge when they operate in specific clusters, which encourage specialization, increase output, and quick invention. These clusters give businesses the chance to dominate their respective markets and maintain their competitive edge over local businesses. The highlighted benefits influence the manner in which international forms and TNCs package their production and distribution to explore regional and domestic markets in various ways (Rugman, 2008, pp. 98).
Customized Products for Target Population
Primarily, international industries strive to become nationally and regionally competitive by producing customized products for the target population. This approach gives them the competitive advantage to enter the global export markets and explore other opportunities for the subsidiaries.
Attracting Foreign Investments and Increasing Exports
Besides, TNCs and international firms explore clusters to attract foreign investments and increase exports. In this, the industries aim to develop a platform for enhancing brand awareness through access to specialized employees and inputs access to information and incentives. Unlike the past when the aim of the international industries was to maximize profits, the cluster has enabled the firms to acknowledge the role of stakeholder agencies such as 'international governmental organizations' (IGOs), World Trade Organization (WTO), and Non-Governmental Organizations (NGOs) in performance measurement and offering technical support in commerce (Rugman, 2008, pp.102).
Role of IGOs, NGOs, and the WTO
Particularly, the IGOs benefit TNCs and international corporations by enabling negotiation of treaties that promote import and export of commodities. The agreements facilitated by IGOs also enhance peace and economic development that influences the nature of commerce among nations. Equally, NGOs also oversee the performance of the governments and corporations in ensuring the provision of quality products and observance of consumer safety. These organizations also empower TNCs and International Entities by providing the appropriate exposure and technical advice regarding the implementation of sustainable development strategies and corporate social responsibility programs (Edwards, 2011, pp. 490). Lastly, the WTO governs the nature of engagements between the trading partners including cluster and international industries. Therefore, the agency implements trade rules to support efficient technology transfer, movement of products, and production patterns.
