Final answer:
A transnational factory boasts its own development, engineering, and production infrastructure and competes with a firm's home factories.
Step-by-step explanation:
A transnational factory has its own infrastructure when it comes to development, engineering, and production, often competing with the firm's home factories for testing new ideas and products. This concept is closely related to the notion of global assembly lines, where production processes are spread across different nations to lower costs and tap into established infrastructures. By using available resources in peripheral and semi-peripheral nations, transnational factories can reduce overall production costs, including wages and materials, compared to their home countries.
Global assembly lines and international specialization enable these factories to lower costs and utilize existing infrastructures.
These factories take advantage of international financial markets and the development of infrastructure abroad to create efficient production systems. Such division of labor across countries for complex products like machinery underscores the specialized skills developed in different locations. Ultimately, the transnational factory model reflects how industrial production has become a globalized effort to maximize efficiency and profitability.