lesson 8- TNCs, Amazon

Question 1

Define TNCs

Answer 1

TNCs are companies/corporations that operate in two or more difference countries

Question 2

4 reasons for growth in TNCs:

Answer 2

1.Technological developments
2.Globalised transport network e.g. containerisation
3.Fewer environmental restrictions e.g. oil exploitation in Niger delta
4.Cheap labour/ cheap land e.g. China accused of exploiting cheap labour from Ghana, Ethiopia etc in pursuit of raw materials

Question 3

3 positive impacts Amazon has had on Rugeley:

Answer 3

1.Changed employment-> increased affluence d2 minimum wage raised
2.More diversity in Rugeley + workplace-> those travelling into R may boost local economy (multiplier effect)
3.Environmentally friendly buildings- solar power, brownfield site- may have been wastelands if not built

Question 4

3 negatives Amazon has had on Rugeley

Answer 4

1.Impact on social wellbeing- 60 hours in 6 days, 20%= temps, no sick pay/holiday, social distancing between workers during lunch times and at work
2.Rugeley is dependent on Amazon- if shuts so many will lose jobs, local economies decline + homogenisation occurs local independent businesses replaced
3.Negative environmental impact- increased traffic, air pollution from vehicles

Question 5

3 positive impacts Amazon has had globally:

Answer 5

1.Environmental impact- Since 2019, Amazon have improved their carbon intensity by 24%, now invest in 100% renewable energy, 24000 electric delivery vehicles etc
2.Opportunities for S/M businesses- in 2022, more than 125,000 EU based s/m businesses sold their products on Amazon
3.Employment- By the end of 2023, Amazon’s workforce reached over 1.5 million- but a 1.04% decline from 2021

Question 6

2 negative impacts Amazon has had globally:

Answer 6

1.Local/independent bookshops and businesses rapidly decreased in sales through the 2000s-> since 1995, half of UK booksellers have closed + since the release of the kindle, sales of physical books plummeted by 9% a year
2.High employee burnout reputation- 2015 NY Times published an article where employees described Amazon’s work culture and bruising

Question 7

What is Amazon’s spatial fulfilment like?

Answer 7

-Amazon fulfilment centres are nearly 1 million sq ft, could swallow 16 football pitches, 175 around the world- 17 in UK
- Amazon operates across 5 continents, 20 countries
-Biggest fulfilment centre= MQY1, Tennesse- 166 million square feet, almost 100 in Europe
-Other countries with fulfilment centres e.g.= Poland, Japan, Singapore etc

Question 8

What are Amazon’s linkages between countries like?

Answer 8

-Amazon ships to over 100 countries worldwide through its AmazonGlobal shipping program

-Amazonfresh now operates in several countries e.g. USA (now more than 40 grocery stores), UK, Italy, Japan etc

-Amazon operates across 5 continents, 20 countries

Question 9

Who do Amazon trade with?- exports and imports

Answer 9

-Today, 60% of the products on amazon are sold by external businesses
-In 2022, more that 125,000 EU-based small/medium businesses sold products on Amazon stores more than 70% sold cross border in the EU
-2022- Amazon’s top markets in the world= 1. US (account for more than 80% of desktop visits to Amazon.co.uk) 2. Germany 3. UK

Question 10

what are Amazon’s marketing patterns like?

Answer 10

-Almost 1/3rd of Amazon products are based on site recommendations
-95% of Amazon searches start with a keyword search- Amazon ads are mostly sold via keyword bidding
-89% of customers read reviews before buying a products- display items with best selling reviews next to less positive feedback-> makes products stand out etc

Question 11

How many countries does Amazon ship to? + How many products do they ship every second?

Answer 11

100 countries
400 a second

Question 12

How much are Amazon worth?

Answer 12

$1.7 million- worth more than countries like South Korea, Australia, Spain