Globalisation+ Flashcards

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1
Q

offshoring

A

Some TNC’s build their own production facilities in other countries with cheaper labour costs

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2
Q

foreign mergers

A

Two firms in different countries join forces to create a single entity. Royal Dutch Shell has headquarters in both UK and the Netherlands

Royal Dutch Petroleum Company and Shell Transport

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3
Q

foreign acquisitions

A

When a TNC takes over a company in another country . In 2010 Cadbury was taken over by Kraft. The Uk has few restrictions on this USA has a committee on this

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4
Q

what attracts a TNC to invest

A

Growing middle class

Physical location(port)

stability

cheap skilled labour

size of economy / population

raw materials

market

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5
Q
A
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