Superpowers and TNCs

Superpowers and TNCs

1. GLOBAL TRADE

   • Manufacturing in Asia by TNCs created a global shift, which has led to rapid increases in exports from developing countries. This shifted economic power away from Western economies and made TNCs extremely powerful.
   • Instead of trade ocurring between different companies much of the increase in global trade is intra-company. Much trade now consists of flows of parts of goods moving between countries to complete a final product.
   • UNCTAD estimated that TNCs now account for 80% of all global trade.

2. TECHNOLOGY

   • In 1995, WTO required all members to protect/enforce their intellectual property rights, registering all new technology under patent law. (exclusive right of ownership of intellectual property by a state)
   • Patents (TRIPS) favoured TNCs. They spend money on research/innovation. Part of the high cost of such items lies in the research and development, so TNCs feel justified in registering any new technology as theirs.

3. PATENTS

   • Patents from pharmaceutical companies make many medicines unaffordable to poor countries. (Many treatments for HIV - ARV - are unaffordable in sub-Saharan Africa, the worst affected area in the world)
   • Genetically modified crops are controlled by TNCs. Some force farmers to sign contracts to prevent them from saving seed. GM engineers can even stop seeps from germinating. 1 billion of the world's poorest people rely on saved seed but must buy new seed each year.

4. NOTES

   • TNCs are an expression of soft power. The ideology of these brands are linked to the nation they are based in and spread their ideals globally.
   • TNCs can use trade and patents to control other nations and products which as a result impact the global economy. TNCs can be considered superpowers.

5. WESTERNISATION

   • The adoption of culture of western Europe by societies in other parts of the world, whether through compulsion or influence.
   • APPLE MUSIC releases music globally at the same time. English is the dominant language so countries like the UK and USA have a lot of soft power.

6. GLOBAL CULTURE

   • Consumerism. Capitalism. White, Anglo-Saxon outlook with English as the dominant language. Gender equality and religious freedom. Adapting and absorbing other cultures.
   • Dominants of US culture globally is an expression of global power

7. STATISTICS

   • In 2006, 6/10 of the largest TNCs were based in the USA.
   • By 2015, 3/10 of the largest TNCs were based in the USA, 2 from China and 2 from the UK.
   • Walmart has the same revenue as Sweden.
   • All Chinese TNCs are part owned by the state and much of profits go back to the government.