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8
Summary of Session 3
Study Circle EST1 (Tiia Kask)
Hi friends from ISC!
We hope that everything is OK with all of you and you enjoy the international study circle activities.
Now we would like to present the short summary of 3 seminar of Estonian's study circle.
During the third meeting our study circle members mainly discussed about in the following issues about TNCs in Estonia:
- 1. The main factors what Estonia offers to TNCs:
- 2. Do the TNCs help or hinder the economic development?
- 3. Global competition - for or against?!
The main factors what Estonia offers to TNCs:
- Estonia's natural asset is its location at the cross-roads of East and West. Estonia can be as bridge for go to Russian market;
- the political and economical stability. The Kroon, Estonia's fully-convertible currency is pegged to the Deutschmark at a rate of 8:1 - Estonian has
followed a firm monetary policy to guarantee a stable economic environment.
- low labour costs. The Estonian Investment Agency notes the average hourly wage in Estonian industry is ten times lower than in Finland and 20 times
lower than in Germany;
- confidential banking and insurance;
- liberal market of real estate;
- low taxes (for health insurance, social taxes);
- foreign firms that are based on foreign capital and Estonian firms that are based on Estonian capital have equal conditions;
- cultural background of Estonians.
Do the TNCs help or hinder the economic development in Estonia?
There are some positive aspects of coming TNCs to Estonia:
- job creating;
- promoting export of products;
- make a competition in Estonian market.
Some aspects of hinder the economic development by TNCs in Estonia:
- sometimes the tehnology used by TNCs in Estonia is not high quality;
- in some cases in small countries, like Estonia, the national branch of industry is not able to compete to TNCs and the result of that will be the liquidate
of Estonian industry in this field. Such situation was happend with Estonian's industry of paper.
Global competition - for or against?!
Estonia is open country and it's presume to be ready for global competition. We are ready, but in what level - it's another question.
One of our study circle member Mr. Räni Kruuse, made a correct and interesting conclusion:
"For Estonia the global competition is global inevitability and our task is quickly to adapt and also to come out with safe and sound."
Evaluation
The seminar consisted of the following activities:
- 1. Introduction and short summary of the reports from Bulgaria, S.-Africa and Spain.
One point of discussion, mentioned by Spanish study circle in their report - the differences between TNC and big company - was arised the heated
discussion in our study circle. The members tried to understand the differences between Transnationals, Multinationals and big companies. We found
out that the term Transnational is not understandable for ordinary people, who will read in newspapers or listen by radio about TNCs. Maybe it will be
one task of TU to make a lobby in workplaces to explain the content of TNCs.
- 2. Discussion about the main factors why TNCs roam the world.
- 3. Discussion about main factors what Estonia offers to TNCs (on the base of general factors, what were mentioned before).
- 4. Debate about global competition and positive and negative aspects of TNCs in the economical development
In the discussions study circle stressed on the situation in Estonia.
In the evaluation of third session, made by study circle members, were mentioned that they can discuss the problems, concerning not only the topic of seminar,
but also the other actual problems in Estonia.
Once again the members noted the good team work in our group. They learn from each other a lot.
Study circle members are looking forward to meet in next week and to hear a lot of interesting experiences and useful knowledge from other study circles
from all over the world.
Links Conserning this summary
Study Circles other summaries
[Session 1]/ [Session 2]/ [Session 3]/ [Session 4]
[Session 5]/ [Session 6]/ [Session 7]/ [Session 8]
Summaries of session 3
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