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  • TNC's
    • Transnational Corporations
      • companies that operate in over two countries
      • can be split into three different groups according to their industry
        • Resource extraction
          • Mining, gas extraction and oil producing
            • ExxonMobil, BP
        • Manufacturing
          • High-tech
            • computers, microelectronics, pharmaceuticals
              • HP, GlaxoSmithKline, AstraZeneca
          • Consumer goods
            • Motor vehicles, televisions and other electricals
              • Ford, BMW, Sony
            • many of these are assembly industries
          • mass produced consumer goods
            • Cigarettes, Drinks, Cosmetics, cereals
              • Coca-Cola, Kellogs, Unilever
        • Service Operations
          • Banking/Insurance, advertising, hotel chains, retailers
            • Barclays, AXA, TESCO
    • Growth of TNC's
      • Why expand to different countries?
        • Fewer restrictions due to trade barriers
        • Less stringent rules on employment and pollution
        • Greater supply of raw material
        • Better government policies such as grants, lower taxes and subsidies
        • Take advantage of trade within trade blocs
        • Larger populations with cheaper labour costs
        • Allow growth= economies of scale, reducing costs finance new investment and compete in global markets
        • acquire geographical flexibility so they can shift resources and production between locations to maximise products
        • To serve a global market TNC's may globalise production by:
          • Produce for the market in which plant is situated
          • Use one plant to produce number of countries
          • Source parts in places where they assemble their products close to the market
            • called GLOCALISATION


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