Transnational Corporations, Competition and Monopoly

Abstract

The paper argues that much of the literature on the impact of TNCs on the Third World is located at the level of circulation. Making use of the recent critical literature on monopoly and competition, it is argued that surplus profits earned by NCs in Third World countries are not primarily the result of market power, but derive from their ability to enter markets in which very favorable demand conditions exist and from their productivity advantages with respect to local firms.