Coca Cola

Question 1

How is Coca Cola spatially organised?

Answer 1

• a TNC with global influence and widespread across the globe
• headquarters in Atlanta, USA
• bottled in over 200 countries worldwide so globally widespread
• many branches in both HIC’s and LIC’s where labour and manufacturing costs are cheaper

Question 2

What is the evidence for Coca Cola being a TNC?

Answer 2

• has headquarters in Atlanta USA, a core area
• sells over 400 brands in over 300 countries
• bottled in 200 countries across the world
• makes huge profits - $47 billion in 2024
• large employers - 71,000 worldwide

Question 3

What are the advantages of TNC’s being located in India?

Answer 3

• bring capital, modern technology and skills
• improve infrastructure leading to the multiplier effect - more local income, locals spend more, government gain tax leading to economic development
• create jobs which increases exports

Question 4

What advantages has Coca Cola brought to India?

Answer 4

• invested over $1 billion in India
• in Asia every 1 Coca Cola job creates 10 in the local community
• employs 25,000 in India and indirectly employs 150,000
• Coca Cola foundation spent over $10 million on community programmes eg. drinking water and sustainable energy projects
• set up mobile training units to provide population with skills

Question 5

What are the disadvantages of TNCs being located in LICs?

Answer 5

• air and water pollution increase
• huge volumes of waste generated which cannot be easily managed
• local pollution controls are either weak or ignored
• working conditions are poor and workers are exploited
• profits are often taken out of the country with leakages to larger HICs so no real economic benefit to LICs

Question 6

What disadvantages has Coca Cola brought to India?

Answer 6

• in Kerala the bottling plant has been accused of draining local aquifers
• takes 4 litres of water to make 1 litre of coke and water tables have decreased 1m/year in the time that coke has been operating in Kerala
• people have to travel 5km to fetch safe drinking water - reduces the workforce so local economy suffers

Question 7

How has Coca Cola affected the population in San Cristobal, Mexico?

Answer 7

• 20% babies and toddlers drink coke - reliant on this as a water source so stuck in a cycle where HIC profits but LIC remains in poverty
• 40% production generated in very stressed water regions and local water tanks are dry
• 110 million gallons of water are extracted per year