The role of the transnational corporation Flashcards
What are TNCs or multinational corporations
Companies that operate in more than one country
What is outsourcing
Where a business makes a contract with another company to complete some of the work rather than doing it within their own company
What sort of things can be outsourced
Making products or providing a service
What is the aim of outsourcing
To reduce costs
What is Off shoring
Where a company moves part of its operations to another country often because labour costs are lower or because the economic situation is more favourable
Who is JLR
Jaguar Land Rover
What do Jaguar Land Rover do
U.K.’s largest automotive manufacture
Who has owned JLR since 2008
Indian transnational corporation TATA
How many vehicles did JLR sell in 2014
460,000 26% to China
What are the 3UK manufacturing sites for JLR
Solihull, Castle Bromwich, Halewood
How many employees does JLR have in the UK
17,000
Who did JLR do into joint partnership with in 2012
Chery automobile
Why did JLR partner with Chery automobile
As they wanted to chery motors to produce Vehicles and engines for seven models of car
How much was invested into the chery automobile factory
£1 billion
Where else are our JLR confirmed to build a manufacturing facility
Rio de Janeiro 
How many jobs will be created with JLR create a facility in Rio de Janeiro
400 jobs
Why will JLR be building manufacturing plants in Slovakia and Austria
As They have partnered with a company called Magna Steyer which operates in these regions
What are some positives of TNCs on host countries
 Raise living standards, high environmental standards, technology transfer, political stability
What are some negatives of TNCs on host countries
Tax avoidance, growing global inequalities, environmental degradation, unemployment
How do TNCs raise living standards in host countries
FDI increase the productivity of the labour force mean higher wage and higher standard of living
How to TNC cause global inequalities to grow
TNCs cluster in selected economies concentrating FDI and favoured regions The Chinese west East disparity
How do TNCs create higher environmental standards
TNCs have international brands to maintain the high environmental standards as a result this Means countries with low standards might have to start implementing some things
How do TNCs cause environmental Degradation
Export the negative externalities of the activities to less developed countries
What is an example of how TNCs can be environmentally negative
Move manufacturing and production out of the EU to avoid carbon taxes
Shell and oil pollution in Niger
Why is technology transfer important for development
Help accelerate economic development in emerging economies
How do TNCs promote political stability
As they provide work for the floating population reducing conflict between rural and urban populations
How can TNCs cause unemployment
Outsourcing and offshoring initiate unemployment in developed economies and lead to higher Social Security spending
What is glocalisation 
Means adapting the goods or services of a business to increase consumer appeal in different local markets
what is glocalisation used to address
Religious or cultural objections or regulatory or design restrictions
What does BMW do that is classed as glocalisation
BMW makes right hand a car drive to the UK market but left hand drive cars for the German market because the countries drive on different sides of the road
How to Tesco glocalise Their products
Don’t rap fruit or veg and plastic in Thailand because the country is wet market tradition by which they trust any produce taken/selected by hand
