The Role Of TNCs In World Energy Production And Distribution

Question 1

What is a TNC

Answer 1

A corporation that operates in at least two countries. They may have their centres of production in one or more countries, while the headquarters aren’t.

Question 2

What happens to TNCs as the organisation becomes more global?

Answer 2

Regional headquarters and regional R&D departments, develop in manufacturing areas.

Question 3

What is the largest TNC as of 2007?

Answer 3

Wal-Mart

Question 4

What do TNCs control and coordinate?

Answer 4

Economic activities in different countries and develop trade within and between units if the same corporation in different countries. Because of this they can control the terms of trade and can reduce the effects of quota restrictions on the movement of goods.

Question 5

What are TNCs able to take advantage of?

Answer 5

Spatial differences in production at a global scale. They can exploit differences in the avaliablity of capital, labour costs, and land and building costs.

Question 6

What is the problem with TNCs?

Answer 6

They exert considerable political influence on governments in medcs and ledcs.

Question 7

BP case study:

Answer 7

> oil spill- gulf of Mexico
exploration and production, refining and marketing, gas, power and renewables
26 country exploration sites
18.3 billion barrels of oil reserves
pipelines, tankers and ships- transportation
pipeline of 1,700 km
deepwater pipeline in the gulf of mexico
second largest fuel retailer UK