spatial organisation Flashcards
HQ’s
traditionally company Hq’s are based in major city in home country
Most TNC’s have subsidiary headquarters in each continent or where their man operations are based
Research and Development
In order to maintain position competitively engage in R&D
Based in country of origin and will locate near to centres of higher education to take advantage of graduate labour market
Research and Development
In order to maintain position competitively engage in R&D
Based in country of origin and will locate near to centres of higher education to take advantage of graduate labour market
offshoring and outsourcing
Both are used by TNC’s to organise production to support services more cost effectively and involve exporting manufacturing or service jobs from costly economies to lower wage economies
OFFSHORING: relocating organisation to an overseas location to take advantage of lower costs or vice versa to access wealthier markets
OUTSOURCING: involves subcontracting part of business operation to another company where costs are lower
offshoring and outsourcing
Both are used by TNC’s to organise production to support services more cost effectively and involve exporting manufacturing or service jobs from costly economies to lower wage economies
OFFSHORING: relocating organisation to an overseas location to take advantage of lower costs or vice versa to access wealthier markets
OUTSOURCING: involves subcontracting part of business operation to another company where costs are lower
