EXPANDING DEVELOPING COUNTRIES´ EXPORTS IN A GLOBAL ECONOMY THE NEED TO EMULATE THE STRATEGIES USED BY TRANSNATIONAL CORPORATIONS FOR INTERNATIONAL BUSINESS DEVELOPMENT

World exports have expanded considerably during the past three decades. Developed countries gained more than other countries from this increase because of the strategies adopted by their transnational corporations (TNCs). The strategies of TNCs for international business emphasizes key elements for strengthening the competitiveness of enterprises, especially technology creation and outward foreign direct investment (FDI) to access resources and markets. Most export promotion and development activities carried out by export-oriented enterprises in developing countries contribute little to boosting and upgrading their exports because these activities are based on concepts - basically free trade, comparative advantage and interrelated concepts - that do not capture the driving forces for trade development in today’s global economy. Proponents of almost total trade liberalization and of a limited role of the State in the economy nevertheless overstate the importance of these concepts when advising developing countries on trade strategies. This ideological consideration benefits mainly developed countries’ TNCs, which now dominate world trade. To obtain greater benefits from an outward-oriented development strategy, policy makers in developing countries should support export-oriented enterprises emulating TNCs’ strategies for international business.