Investment and TNCs

Question 1

define TNC

Answer 1

TNC stands for trans-national corporation and they are companies that manage production/ provide services in at least two countries

Question 2

what factors have allowed TNCs to develop?

Answer 2

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

Question 3

what has been the effect of the growth of TNCs?

Answer 3

TNCs have led to the wide spread establishment of global supply chains and have become very influential to the world economy

Question 4

what are the advantages of TNCs?

Answer 4

TNCs promote efficiency and growth of the world economy

Question 5

what are the disadvantages of TNCs?

Answer 5

most profits go to overseas countries rather than local,

Question 6

what is a global supply chain?

Answer 6

a global supply chain is when parts of production is sourced from multiple countries to achieve more efficient production

Question 7

what proportion of global trade occur within supply chains?

Answer 7

70%

Question 8

what has been the impact of the COVID pandemic on global supply chains and what has this meant for economies

Answer 8

the COVID pandemic has disrupted manufacturing with lockdowns slowing or even stopping the flow of production