Transcript Transnational Corporation

Transnational
Corporations
A corporation or enterprise that
operates in more than 1 country
(can be called a multi-national too)
Top 10 non-banking TNCs
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2
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5
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8
9
10
GE
Vodafone
Ford
BP
GM
Shell
Toyota
Total/Elf
FT
Exxon
- sketch the table
USA
UK
UK
USA
UK
USA
Neth/UK
Japan
France
France
Aero, eng
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Features
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Large, wealthy organisations
HQ in 1 country, branches across world
Improvements in transport and communications
HQ in richer areas (Japan,USA) with research
and development
Production in poorer areas with lower labour
costs, lenient laws or government wants
investment
Features
1. Large, _ _ _ _ _ _ _ organisations
2. HQ in 1 country, branches across _ _ _ _ _
3. Improvements in transport and communications have made
4.
5.
them rich.
HQ in _ _ _ _ _ _ areas (Japan,USA) with research and
development
Production in _ _ _ _ _ _ countries with lower labour costs,
lenient laws or where a government wants investment
TNCs and GDP 2012
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Revenue in $billions per TNC
Wal-Mart-USA=244
Nestle=49
Coca Cola-USA=21
Gap-USA=15
Nike-USA=11
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Total wealth produced in $billions per country
Bangladesh=259
Tunisia=68
Ghana =44
Jamaica=10
Advantages
Disadvantages
• Provide jobs/wages
• Income benefits local
• Leakage-profits taken out
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businesses-multiplier
effect
Training-skills
New technology
Money to invest
Improved infrastructure
and comms.
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of host country
Low wages
Key jobs to outsiders
Branch plants may close
Poor work conditions
Safety compromised
Health jeopardised
Air, water pollution