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TNCs
Aims:
1. To know what TNCs are and some of their key
characteristics.
2. To understand the advantages and
disadvantages of TNCs.
3. To examine an example of campaigns against
unfair trade…read more

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Today there are They have grown by buying
Characteristics over 60,000 TNCs up foreign firms in mergers
of TNCs which account for and acquisitions e.g. Guinness
25% of the world's and Smirnoff are both owned
economic activity by Diageo.
Much of their
A TNC or Trans manufacturing is
National subcontracted to
Corporation is a third parties making
it hard to regulate
company that
has operations in working conditions.
more than one
country.
6 of the top 10
TNCs originated
They link together in the USA
groups of countries
through the Wal-Mart is one of They also forge
production of the Top TNCs with connections between
goods (most a revenue of $351 people in different
manufacturing billion in 2007. countries by shaping
TNCs are `assembly common patterns of
Saudi Arabia has a
industries').
GDP of $349 billion! consumption .…read more

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The Mini ­ an example of an assembly industry
Bonnet ­ made in Windscreen ­ Made in Belgium Wing mirrors ­ made
Netherlands Company HQ France in Germany
Company HQ Company HQ
Austria Canada
Radiator ­ Made Exhaust system ­
in Germany made in UK
Company HQ Company HQ USA
Germany
Engine - Made in
Brazil
Wheels ­ made Company HQ
in Italy, Front and rear
Brazil
Germany bumpers ­ made in
UK
Company HQ
USA Company HQ Canada…read more

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Supermarkets as superpowers
Tesco started as a grocery stall in 1919. By
1956 the first self-service supermarket had
opened in Maldon. In 2007 £1 in every £8 was
spent in Tesco
In the late 90's Tesco expanded into E Europe
and SE Asia ­ 57% of its floor space is now
outside the UK. 60% of Tesco's profits come
from Asia.
In total Tesco has over 1250
overseas stores and employs
450,000 people. Worldwide sales
topped £47billion in 2006.…read more

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To be closer to their
separate markets (these
may need to be served To operate where
differently, depending on labour is cheaper and
cultural needs ­ less regulated.
`glocalisation')
Reasons for the
global nature of
To spread the risk (e.g.
TNCs those linked with
To operate inside local industrial action or crop
trade barriers, such as failure).
tariffs and quotas.
To gain grants and other
rewards from national
governments who are
trying to attract inward
investment.…read more

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