Restrictive control of marketing and distribution channels by transnational corporations
Nature: The very fact that transnational corporations operate in more than one market and generally hold dominant market power as producers and traders has enabled them to acquire extensive control of marketing and distribution channels. In a number of cases their power may have limited the formation or expansion of alternative channels, given their ability to maintain or raise barriers to the entry of outsiders. The marketing and distribution of commodities and manufactures in developing countries is being increasingly controlled by specialized transnational marketing or trading corporations. In fact, it has been said that marketing is the key contribution of transnational corporations to developing countries and that marketing barriers constitute the principal obstacle to their exports.
Problem Type: E: Emanations of other problems
Date of last update 01.01.2000 – 00:00 CET