Transnational Company

Question 1

What is globalisation?

Answer 1

• The process by which the world is becoming increasingly interconnected as a result massively increased trade and cultural exchange.

Question 2

What does TNC stand for?

Answer 2

Transnational company

Question 3

What is a transnational company?

Answer 3

• A company that operates in at least two countries.

Question 4

What is an example of a pharmaceutical TNC?

Answer 4

Glaxo Smith Kline

Question 5

Where do Glaxo Smith Kline operate?

Answer 5

• London
• USA
• Brazil
• 100 different countries

Question 7

What are the positive impacts on health for Glaxo Smith Kline?

Answer 7

• making drugs more affordable in developing countries
• charity donations to fund better sanitation
• running trials of a vaccine against malaria
• helping provide medicine in disaster prone areas
• help young people living with disability/diabetes and cancer

Question 8

What are the negative impacts on health for Glaxo Smith Kline?

Answer 8

• some medication is very expensive

- some may not have access to adequate drugs

Question 10

How many smokers are there in developing countries?

Answer 10

800 million

Question 11

What is the process that the pharmaceutical company goes through to market a new drug?

Answer 11

1. A pharmaceutical company discovers a new drug to treat and prevent a condition.
2. They put it through a series of clinical tests and trials to gain approval for marketing.
3. Once the medicines and healthcare products regulatory agency (MHRA) approve the drug, the MHRA gives them a license.
4. The pharmaceutical company can then market the medicine under a brand name.
5. The company then patents the new medicine for 20 years. This allows the company to recoup the cost of research and development.
6. Once a patent expires other drug companies then have the right to manufacture and market the generic drug under a different name.

Question 12

How many cigarettes are smoked each year?

Answer 12

5.5 trillion

Question 14

What is an example of a tobacco TNC?

Answer 14

British American Tobacco (BAT)

Question 17

How many people die globally due to tobacco?

Answer 17

5.4 million

Question 19

What percentage of the tobacco industry does British American Tobacco own?

Answer 19

17% market share

Question 20

What are TNCs turning to LEDCs for?

Answer 20

• A source of cheap tobacco, replace food crops
• A source of cheap labour for the manufacture of tobacco products
• The expansion of their markets

Question 21

In Mauritius what percentage of the tobacco market does British American Tobacco own?

Answer 21

99%

Question 22

How many people smoke in Mauritius?

Answer 22

• The majority of smokers are children

- 1/3 of all children aged 13 to 15 smoke

Question 23

What are the impacts of British American Tobacco on a national (Mauritius) and international level?

Answer 23

• pressure on local health services
• increase in type two diabetes
• 5.4 million deaths per year globally
• Poor people are prepared to go without food for a cigarette

Question 24

How does British American tobacco advertise cigarettes in Mauritius?

Answer 24

• selling single stick cigarettes
• 7p per stick, “pocket money prices”
• they give shop owners a jar to store singlestick cigarettes
• advertising smoking it in a positive lifestyle
• offered to paint shop fronts in the brand colours
• free products for shop owners e.g. umbrellas