The rise of the TNC Flashcards
Why are TNCs among the most powerful actors in the GPE?
- TNCs now among the most powerful actors in GPE
- Increasingly able to dictate terms of production + trade
- Possess assets + deploy annual budgets which dwarf those of the poor states where their operations are located
Are TNCs key driving forces behind globalisation?
TNCs are key driving forces behind globalisation
Benefits to TNCs of having operations in several countries?
- Can choose to locate operations where it’s most profitable
- Have access to considerable funds for investment + can command best available business + technical expertise
What is the result of TNCs using capital-intensive methods of production?
- TNCs tend to use capital-intensive methods of production
- So don’t employ large no.s of workers from host country
Why does FDI often not significantly improve skill level of citizens?
Often skilled + managerial employees brought in from overseas
How can TNCs avoid host country’s taxation?
TNCs may manage to avoid host country’s taxation by shifting profits out of host country
How do TNCs drive the globalisation of production?
- Increased globalisation of production
- As firms seek cheap, flexible labour
- With little or no regulation by national governments of their activities
What has happened to the labour force?
- Labour force has become strongly feminised
- Women workers highly vulnerable to exploitation
What happened in Rana Plaza collapse in 2013?
- Collapse of Rana Plaza garments factory
- Dhaka, Bangladesh
- 1,135 people killed
- Even though factory had supposedly been audited for health + safety standards
What was the impact of the Rana Plaza collapse in 2013?
- Nike, Gap, Apple suffered damaging exposures of working conditions in their supply chains
- Responded by positioning themselves at forefront of Corporate Social Responsibility agenda
