Transnational corporation-bangladesh relations: a resource dependence perspective

Abstract

This article examines the application of "resource dependency theory" to transnational corporations (TNCs) operating in host countries like Bangladesh to explain the relationship between the TNCs and Bangladesh. Data indicate that while the TNCs' participation in a third world host country is encouraged primarily for promoting its economic development, TNCs are mainly attracted by market size, purchasing capacities (determined mainly by GNP) of the population, and stable political condition of the country. Although examination of the application of resource dependency theory provides some insights into understanding the complicated relationship between TNCs and Bangladesh, several other factors, not explained by resource dependency theory, help explain the behavior of TNCs in a host country