Influence of TNCs Flashcards
Define TNCs?
They are transnational corporations who have a global reach.
What three things do TNCs have soft power in?
=> Economics.
=> Politics.
=> Culture.
How do TNCs have influence culture?
=> They are easily recognisable, language-free (E.g McDonalds).
=> Global media corporations (Disney).
=> Leads to the spread of western culture, whilst dominating markets.
How do TNCs influence economically?
=> Can influence employment and poverty levels, providing skills and training. (Foxconn making Apple products employed at least 1/4 of a million people).
=> Some of the largest TNCs have annual profits exceeding GDPs of countries (e.g Apple, Walmart).
How do TNCs influence politically?
=> They can influence politics and elections (Koch brothers and Trump).
=> Can affect political decisions due to lobbying or large investments.
=> Control through technology globally e.g patents.
What were the Bodo Oil Spills? When? Where? Who?
=> 2008/9
=> Two large oil spills in the Niger Delta area in Nigeria.
=> 11 million gallons of crude oil spilt by Shell.
Consequences for Bodo Oil Spills?
=> Has devastated the livelihoods for thousands of farmers and fisherman.
=> Shell has agreed to pay £55 million as compensation, as well as clean up the swamps and fishing ground.
=> Heavy leakages for 6 months more has led many being forced to leave to find new fishing grounds (80% are fisherman).
=> BUT UN says the spills will take 30 years to clean and £1bn to clean up.
Issue of oil spills and threat to sovereignty?
=> ‘Ecocide’ from the oil spills.
=> Threat as Nigerian government has weak state apparatus to monitor oil operations (e.g pipeline sabotage, oil spills).
=> 70% of oil operations are controlled by TNCs, accounting for millions of leak barrels.
Issues of contract workers and threat to sovereignty?
=> Accusations of human rights atrocities, with no job security, poverty wages, miserable living conditions and insufficient health insurance for contract workers.
=> Makes use of contractor companies, making it easier to exploit workers and harder for them to organise and unionise —> Mistreatment breaks own code of conduct and violates international labour conventions.
=> E.g after 1 year of working only paid $200 a month V $1200 for white expat workers
=> THREAT as the government fails R2P and cannot protect its industrial workers.
Other issues with oil and corruption?
=> Nigeria does not have the money or refining facilities, so forced to sell its cheaper natural resources to TNCs, and then has to buy it back at a much higher price as refined oil.
=> DEPENDENT on TNCs, as 70% of its income depends on oil.
=> High levels of corruption. Money is often taken from oil funds. Political decisions can be directed by TNC profit making. $165 bn found missing in 2016.
