Ethical issues and impacts of a TNC (L9)

Question 1

What impact does a TNC have on developing countries

Answer 1

More jobs, leaving people with more money to spend.

• Increased HDI and GDP
• Investment from other TNC’s to set up shops and services
• Trickle down effect; Spiral of growth

Question 2

What issues might there be with manufacturing in terms of wages?

Answer 2

People receive below the living wage; usually minimum wage in the country. ($0.40 for sweatshop workers in Suzhou, China)

Question 3

Where does Apple design their products?

Answer 3

California

Question 4

Why do TNC’s outsource?

Answer 4

To cut down on costs and boost profits. This is done by sourcing products from different parts of the world; within trade blocs, or where the stuff is simply cheapest. E.g, Adidas do research in Germany, manufacture in China, advertise in UK

Question 5

What environmental issues are faced by Adidas?

Answer 5

Tropical deforestation in Brazil to create space for cattle farmers, for leather.

Question 6

How does Adidas glocalise their products?

Answer 6

Adidas glocalises model names, colour and design for specific countries. For example, Adidas sponsored Team GB for the 2012 Olympics. For this, they used blue kits with the England logo and British colours. Logically, this design would only be sold in England, while other countries would have their own colours and logos.

Question 7

Which social issues are faced in Chinese Sweatshops?

Answer 7

physical and verbal abuse, sexual harassment, discrimination, forced labour, and oppressive wage deductions.

Question 8

What is a knock on effect of Deforestation? (Cheeky physical question)

Answer 8

• Lack of interception of precipitation
• Vast amounts of CO2 into the atmosphere when burning
• Climate change