STRATEGIC DRIVERS OF TRANSNATIONAL ACTIVITIES

Against the backdrop of the globalisation of the economy, country states likeMauritius, adopting an open economy, face heightened risks of a deterioration oftheir balance of payments. Mauritius' traditional economic pillars are threatened.Economic growth is limited by its market size and resources. Sound economicpolicy demands that firms build export capacity and penetrate regional and worldmarkets. Consideration of the fundamentals feeding the strategic decisions ofmulti-national companies in Mauritius, and identification of the restraining factorswere therefore examined in this research. Following a literature review, aqualitative study, comprising in-depth interviews with a sample of the heads ofthe Top 100 Corporations uncovered the drivers for, and challenges to,transnational activities. The research confirmed the universality of drivers andchallenges, unravelled the linkage with the micro- and macro-economicenvironment and pointed to specific issues related to the power of customers,the insular mindset and partnerships