linkages in terms of tncs Flashcards
1
Q
why are linkages created?
A
to benefit the tnc
expand the company
2
Q
how do tncs create links with other countries?
A
FDI which benefits the country as this creates jobs and contributes to the economy
3
Q
what is a merger in terms of a tnc?
A
TNCs join to form one larger company, helping to form foreign links if the TNC is from a foreign country
4
Q
what is an acquisition in terms of a tnc?
A
A TNC buys another company in order to expand
Acquisitions are frequently associated with local job loss as a large TNC will take full control
5
Q
what is vertical integration?
A
taking ownership of part of the supply chain, e.g. buying a plantation
6
Q
what is horizontal integration?
A
taking ownership of another company, often one that is
in a similar industry
