N23 [TZ2] (a) 2 TNCs that have made different places more interconnected. Flashcards
Intro 1
Supply chains
Point
TNCs like Apple have established complex supply chains that link their headquarters to various production sites worldwide, significantly enhancing global interconnectedness.
Supply chains
Evidence
Apple Inc. operates a highly intricate supply chain that connects its headquarters in Cupertino, California, to manufacturing facilities in China, where products like the iPhone are assembled.
The production of an iPhone involves sourcing components from various countries, including Japan for chips, South Korea for displays, and other nations for additional parts, before they are shipped to China for final assembly by companies like Foxconn.
This global supply chain enhances FDI, where Apple invests in production facilities abroad to optimise costs and production efficiency.
Supply chains
Explanation
By utilising outsourcing of production, Apple benefits from reduced tariffs and logistics by integrating different locations into its production strategy.
This interconnected supply chain not only facilitates the flow of goods but also fosters economic relationships between countries, as local suppliers and manufacturers become essential to the global operations of TNCs.
The reliance on a vast network of suppliers creates interdependence between regions, highlighting how TNCs contribute to economic integration and the interconnectedness of global markets.
(Vietnam LMIC, creates economic opportunities)
Diffusion
Point
TNCs also facilitate the diffusion of ideas and cultural traits through their branded commodities, connecting different consumer markets.
Diffusion
Evidence
McDonaldâs serves as a prime example of this phenomenon, particularly in India, where the company has adapted its menu to reflect local tastes and cultural preferences.
Instead of offering traditional beef burgers, McDonaldâs introduced the McAloo Tikki burger, a vegetarian option made with spiced potato, to cater to the dietary restrictions of a significant portion of the Indian population.
This strategy not only makes McDonaldâs products more appealing to local consumers but also promotes the exchange of cultural ideas between different markets.
Diffusion Explanation
By incorporating local flavours and customs into its offerings, McDonaldâs fosters a sense of familiarity and connection for Indian consumers while simultaneously introducing elements of Indian culture to its global brand.
As these localised products gain popularity, they carry cultural traits that intertwine the identities of various places, creating shared experiences among consumers.
This cultural diffusion illustrates how TNCs like McDonaldâs contribute to the interconnectedness of places by bridging cultural gaps and promoting a global dialogue through food.
Ultimately, the adaptation of McDonaldâs menu in India exemplifies the role of TNCs in facilitating cultural exchange and enhancing global interconnectivity.