Transnational corporations Flashcards
What does TNC stand for?
Transnational corporation
What does the TNC BP provide?
oil
How many people does BP employ worldwide?
79,800
Where is the BP headquarters?
London, UK
In how many countries does BP operate (exploration, development, production)?
25
What is the long term benefit of TNCs in host nations?
the new use of technology
What are the advantages of TNCs for host countries?
- increase employment
- improve levels of skill
- new technology
- Foreign currency brought in
What are the disadvantages of TNCs for host countries?
- many jobs are low of skill
- majority of profits send to TNC home country
- investment may be short-term (TNC may pull out at short notice)
What are the advantages of TNCs for the country of origin?
- higher jobs such as research
- overseas investment brings in income
What are the disadvantages of TNCs for the country of origin?
- workforce may need to relocate
What are the reasons for the growth of TNCs across the world?
- cheap labor
- flexible workforce
- fewer environmental restrictions
- globalised transport network
- technological developments
- governmental encouragement
- cheap land
Define glocalisation.
A mash up of globalisation and local which descries the process of TNCs adapting their products depending on where in the world it is marketed
Give an example of glocalisation.
Cadbury make their chocolate sweeter in China compared to the rest of the world
Mcdonalds don’t serve pork or beef in India
