Globalisation+ Flashcards
1
Q
offshoring
A
Some TNC’s build their own production facilities in other countries with cheaper labour costs
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
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
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
5
Q
A