Lesson 6

Question 1

What is a TNC?

Answer 1

A company that operates in more than one country to produce or sell products & services. They help to build bridges between nations and bolt together different economies and societies through their supply chains and marketing strategies

Question 2

How are TNCs recognised worldwide and have a high revenue? (3)

Answer 2

Alter products for each country
Use different strategies to expand globally
source materials from all over the world

Question 3

What are EPZs?

Answer 3

Places which have low costs, a good location, technology, transport and trade blocs

Question 4

What is glocalisation?

Answer 4

Adapting global products for a local market

Question 5

What is FDI used for?

Answer 5

To expand companies/merge with others or acquisition (buying other companies)

Question 6

How is McDonalds a TNC?

Answer 6

over 31,000 restaurants
1.5 million+ employed 
$41 billion in sales
glocalisation - Veggie option in middle east
in 2012 Olympics sponsor

Question 7

Positives of McDonalds? (4)

Answer 7

2004/5 donated $5 million to help hurricane Katrina victims
made 66,000 jobs in Brazil & boosted their economy by $701 million
reuse cooking oil as bio diesel & recycle cardboard
Train staff - give qualifications

Question 8

negatives of McDonalds? (4)

Answer 8

Allegations of deforestation of the Amazon for soya beans to feed chickens
in 2000 they were using sweatshops to make Happy Meal toys
Exploit children - advertisement targeted at them
New culture lead to loss of traditional culture

Question 9

How is Apple a TNC? (4)

Answer 9

504 stores in 24 countries
123000 people full timed employed
$52 billion in sales
glocalisation - IPhone 5c

Question 10

What is Foxconn?

Answer 10

Worlds largest contractor for electronic goods manufacture

Question 11

Positives of Apple and Foxconn? (5)

Answer 11

Apple gave $10 million to hurricane Harvey relief 2017
Apple created own product RED to support charity
Multiplier effect - local economy benefits
Apple joined fair labour association 2012
Foxconn educate workers

Question 12

Negatives of Apple and Foxconn? (8)

Answer 12

Long hours and breaking rules before 2012
Apple accused of avoiding TAX
Use non renewable energy and toxic chemicals
10 suicides in 2009
2010 50 workers died from chemical poisoning
Nets to prevent suicide at Foxconn
In 2006 worker working 60 hours a week and earning less than $100 a month