TNC's

TNC's

1. global economy

   • 80% global trade linked to TNC's - 2013

2. industries

   • primary
     • extracting natural resources
       • example
         • Shell
           • oil & gas extraction
   • secondary
     • making goods
       • Toyota
         • vehicle manufacture
   • tertiary
     • services
       • Aviva
         • insurance

3. globalisation

   • investment
     • into countries
   • spread new technologies
     • apple - smartphones
   • promote particular cultures
     • McDonalds
       • western-style food
         • other countries
   • driving force
     • influence interactions between certain countries
       • economical
       • political
         • potential investment
         • job creation
         • provision of new tec
       • cultural
   • spatial organisation
     • connects countries together
       • interdependance
         • global supply chain
           • different sectors of buisness in different countries
             • manufacture
               • LEDC
             • retail
               • HIC

4. Structure/TNC framework

   • TNC HQ
     • Large cities
       • HIC's
       • good infrastructure
         • transport
         • communications
       • good supply of highly skilled workers
   • Research & Development Facilites
     • Cities and towns
       • ample supply of highly educated people
         • scientists
         • engineers
       • often same as HQ
       • located near target market
         • e.g. Samsung (South Korean)
           • R&D center Warsaw, Poland
   • Factories
     • LEDCs
       • lower production costs
         • resources
         • land
         • labour
     • Counties where target market is
       • producing products in country where it is sold
         • Nissan
           • UK factory
         • reasons
           • TNC avoid paying import and export taxes
           • reduce transport costs