GLOBALISATION - TNC's role in globalisation

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  • TNC's role in globalisation
    • TNC's build bridges between nations.
    • They make connections and bolt together different economies through their marketing strategies
      • GPN - 2500 suppliers to produce one product - the MINI by BMW.
      • Some places may not be suitable for production or do not have enough market potential.
    • Outsourcing (parts not owned by TNC's).
      • TNC's contract another company to produce goods or service, creating complex supply chains.
    • A TNC manages its own production network when taking advantage of its economic liberalisation
    • Offshoring (parts owned by TNC's).
      • producing parts in SEZ's with cheaper exports - such as ASIAN countries.
    • Develop new markets in countries where they have initially set up factories. (ASIA).
    • Glocalisation
      • Adapting brands and products to suit local market tastes. INDIA's McDonalds introduce beef-less burgers and replace with spicy veggie products.

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