nokia is a MNC
another reason why nokias costantly expanding its range of factories and offices is to be close to its customers, who are spread all across the globe! Nokia's products have massive appeal. Nokia estimates that the mobile phone market had around 2.2 billion peoplein 2005. ad they expect that to rise to 3.5 billion in 2010.
this has grown significantly in Ledc's as they have started to become slightly richer. there fore many TNC's have relocated their buisnesses to these area because of the greater interest into the area as the bigger MNC have moved into the area!
Nokia in MEDC's
nokia is the wordls largest mobile phone and other mobile devices manufacturer. it also provides the network and comunication systems for other buisnesses, improving comunications. Nokia is a finnish TNC (trans-national company.) its head office is in Helsinki, Finland, but it has offices and factories all around the globe. Nokia employs more than 58,000 people worldwide. nokia has plants (offices, Factories and labratories) in many different countries.
- -research and development laboratories (R&D) in eleven countries.
- -factories in 9 countries
- -sales offices in more than 130 countries
TNC's such as Nokia have branches in many countries because they want to reduce cost's. with lower costs there profits rise and TNC's such as Nokia keep cost's low by opening factories and officesin regions of the world that have:
- low labour costs
- cheap building and land costs
- low buisness rates (tax paid by the company)
advantages and disadvantages of TNC investment
whaen a tnc such as nokia opens a new factorie office it usually has a posotive multipier effect and starts more money coming into the area
for example, nokia provides more jobs, then there is more disposable income to the familys that work for nokia, they can then go out and send that money in shops bars pubs and resturants they pub bar or resturant may need to employ more staff to accomidate more buisness, therefore the goverment gets more tax and can put more money into putting more money back into the infrastructre.
nokia in the UK
nokia employs 2,000 people in the uk at three different sites. theses are all in the south east of the uk. this is because of the m4 and the m11 coridors branching out from around london. the m4 corridor goes all the way from london through england and into wales and cardiff.... this makes it easier to transport raw materials into the country and finished products out of the country to where its being sold.