Superpowers - EQ2 - 7.4b&c Flashcards
Define publicly traded TNC
- TNCs whose share are owned by numerous stakeholders (usually other TNCs, banks and large financial institutions such as pension funds) around the world
define State-owned TNCs
- TNCs that are majority or wholly owned by the government.
Where do TNCs location production
- TNCs locate production in low-wage countries and sales in high-profit markets, making them very successful.
TNCs are involved in around ….% of all global trade. ….% of this is between TNCs.
TNCs are involved in around 80% of all global trade. 30% of this is between TNCs.
Describe TNCs roles in R&D
- They drive research and development, with around 50% of all global R&D occurring within TNCs
How do TNCs effect the economic landscape
- TNCs can dominate the economic landscape in terms of production and sales, making it possible for them to affect the pricing of commodities, affecting trade and controlling technologies.
TNCs also exert control of technology globally through ……., with…..
-patents, with companies such as IBM regularly registering the highest number of patents per year
How can TNCs affect developing countries
- Their ability to directly invest in and expand across borders helps emerging economies grow by taking advantage of lower labour costs and incentives.
TNCs invest heavily in………………………… and …………………….., which reduces ……….. and increases …………….. …………….
TNCs invest heavily in communication systems and new technologies, which reduces costs and increases global competitiveness.
Give statitistics about Walmart
- The top TNC by revenue in 2022
- supply chain that includes 30,000 factories in China
- 10,500 stores worldwide
- direct employment of 2.3 million people
Give statistics about Tata Steel
- One of the world’s largest steel companies
- production capacity of approximately 27.5 million tonnes per annum
- It operates in India, Europe, and South East Asia
- second largest steel producer in Europe
Define patenets
- a government authority or licence conferring a right or title for a set period, especially the sole right to exclude others from making, using, or selling an invention
How do intellectual propetyu laws prtect TNCdevelpments
- Patents (new inventions, technologies and systems)
- Copyright (artistic works: music, books, artworks)
- Trademarks (protect designs such as logos)
How do patents protect TNCS
- These are intellectual property systems which are used to prevent technologies and medicines being copied
- They protect the wealth of the developed countries where the TNCs usually originate
Define Intellectual Property
The ownership of ideas and designs, such as patents and copyrights
What is the impact of Intellectual property on global trade
- Patents encourage R&D by protecting investments, though they can also keep new technologies and medicines out of reach for developing nations
- Issues such as high pharmaceutical fees have even led to trade tensions (e.g. the US-China trade war starting in 2018).
Give 3 reasons why TNCs have become more influential than IGOs
- Their economies of scale mean they can reduce theirs costs and out compete smaller companies and, in many cases, take them over
- Their bank balances and ability to borrow money to invest has allowed them to take advantage of globalisation by investing in new technology
- The move towards free-market capitalism and free trade has opened up new markets, allowing them to expand
How have trade patterns changed as a result of TNCs
- Developed countries have greater participation in international trade than developing countries as a result of TNCs
- Much global trade today is intra-company trade within the same company
- & of flows of parts or components of goods and services moving between one country and another before a final product is completed.
What do UNCTAD predict about trade due to TNCs changing trade patterns
In 2013 that TNCs now account for 80% of all global trade - over US$20 trillion
In 1995, the WTO introduced its agreement ón….
Trade-related Aspects of Intellectual Property Rights (TRIPS)
What does the WTO’s oagreement on Trade-related Aspects of Intellectual Property Rights (TRIPS) require members to do
to protect and enforce their intellectual property rights - that is, to register any new technology or process under patent law
Explain how patents have interferred with developing countries medical care
- For example, many new treatments for HIV (known as antiretrovirals or ARV) are very expensive
- Early ARVs tended to be toxic, so later and less-damaging versions were more desirable - but also more expensive
- This has provided a widespread barrier to HIV treatment in sub-Saharan Africa, the worst affected area in the world for HIV/AIDS
How to TNCs benefits from patents on genetically modified crops
- Genetically Modified (GM) crops are controlled by TNCs, e,g. Monsanto in the USA
- Using patent laws, they ‘own’ every GM plant grown from their seed
- Some TNCs force farmers to sign contracts to use only their chemicals, or prevent them from saving seed to plant the following year
- GM engineers can even stop seeds produced by their crops from germinating - so every year farmers must buy new seed
- Over I billion of the world’s poorest people rely on saved seed, but instead they have to buy new seed every year. Again, TNCs benefit most.
- TNCs can have a ………………impact on their global consumers
- The sharing of …………………. of people and cultures
- People can experience foods and other products…..
TNCs can have a** cultural impact** on their global consumers. The sharing of ideas, experiences and lifestyles of people and cultures. People can experience foods and other products not previously available in their countries.
Of the ten best known global brands ………. are from the USA
seven
This is a soft power and has led tocountries around theworld adopting western culture and values including:
- Freedom of speech
- Dress and music
- Food - the spread of fast food outlets McDonalds, Starbucks and KFC
- Use and importance of technology
- Democracy
How do TNCs spread western innovation
- TNCs help to spread innovation as they share new techniques with their foreign affiliates.
- Because most patents have historically been filed in the USA and the EU, this has been mainly a West-East cultural transfer, *
- although Japanese and Korean innovation has also had major impact on western TNCs
Describe the western influence of media TNCs
- Media TNCs have a significant cultural influence through the movies, films and adverts they produce.
- The top five biggest media companies in 2016 were all US TNCs: Google, Walt Disney Company, Comcast (cable TV), 21st Century Fo and Facebook.
The USA’s dominance in cultural influence is a major form of …. …… However, US TNCs have to…….
- soft power
- customise products to meet foreign cultural expectations (glocalisation)
Give examples of how American and Western Culture isn’t alway adopted
- Cultural dishes from Asia, such as curry and sushi, are quickly becoming more
popular than American or European cuisine. - Certain aspects of American culture like American football have been successfully
adopted across the globe.
What has led to westernisation
- The dominance of the USA since 1990,
- The economic power of the EU, have led some people to identify the spread of cultural globalisation
Wh are the characteristics of westernisation
- a culture of consumerism
- a culture of capitalism and the importance attached to attaining wealth
- a white, Anglo-Saxon culture with English as the dominant language
- a culture that ‘cherry picks’ and adapts selective parts of other world cultures and absorbs them.
Give examples of how western TNCs influence global media
*Hollywood, Bollywood and Nollywood (fusion of American culture and film industry through Indian and Nigerian films)
*Facebook Meta owns many other companies e.g. Instagram, WhatsApp
*Love Island, Married at First Sight, MasterChef, Big Brother
Give examples of how western TNCs influence global food
*McDonalds – introduction and fusion of McDonalds into restaurants and countries around the world glocalisation
*Walkers/Lays Crips
*Coca-Cola is the parent company for many drinks companies around the world e.g. Fanta, Sprite, Costa Coffee
Give examples of how western TNCs influence global arts
*Fashion week – TNCs showcase their high-end brands/designers across global cities e.g. Paris, NY, London, Milan
*Theatre Productions e.g. Broadway (NY, USA) and Westend (London) – TNCs have shows which helps to generate income e.g. Disney – The Lion King
*Galleries which showcase different arts/exhibitions ß TNCs may sponsor or have ownership e.g. The Louvre (Paris), National Galleries
