Investment and TNCs

Question 1

what is TNCs?

Answer 1

transnational corporation are global companies that manage production and/or provide in at least 2 countries

Question 2

factors that has allowed TNCs to develop

Answer 2

the removal of restrictions on foreign ownership (deregulation) and the development of global capital markets

Question 3

the effect of the TNC growth

Answer 3

led to the establishment of strategic global production networks and/or global value chains
increasing synchronised global business cycle
account for the majority of global trade

Question 4

the advantages of TNCs

Answer 4

promote growth and efficiency of the world economy which creates new jobs, realise new investments, bring in new technologies and allow host economies to integrate and upgrade in global value chains

Question 5

the disadvantages of TNCs

Answer 5

increasing synchronised global business cycle causes irrelevant countries to be impacted

Question 6

What is a global supply chain (global value chain GVCs)?

Answer 6

global value chains is where international production, trade and investments are organised where different stages of the production process are located across the world

Question 7

what proportion of global trade occurs within supply chains?

Answer 7

around 70% of international trade involves global value chains

Question 8

the impact of COVID pandemic on GVCs and other negative impacts what it means for the economy

Answer 8

unable to complete the production processes due to borders and limited transportation
the exploitation of workers and natural resources in developing countries
can result in significant environmental damage