What are TNCs?
TNC stands for Transnational Corporation. They are companies that provide services or products in more than one country. It can also be a company that manufacturers in more than one country.Or it can be both.
So Coca-Cola for instance is found all over the world in almost every country and is manufactured in different countries many of these are LEDCs.
There are loads of TNCs including Starbucks, MacDonald's, Primark, Coca Cola and Nike.
Why do they locate parts of their business in LEDC
TNCs locate their factories in LEDCs as this means the workers will work for less money.
They also have more power over the workers as the job could be their only source of income and they will behave so not to be fired.
As in some LEDCs there is no benefits system the workers will be desperate to work so they can pay for food and other basic human needs.
Coca-Cola are a TNC and can be bought in 200 countries.
Haven’t you ever had a Coca-Cola abroad?
Coca-Cola is so big it even managed to change the colour of Santa’s coat from green to red.
It is available from Afghanistan to Zimbabwe, from Yemen to El Salvador. It has factories in India and many other countries.
What does it do?
You’ve almost definitely heard of Coca-Cola, but if you haven’t it is a carbonated soft drink made of carbonated water, sugar, caffeine, phosphoric acid v. caramel (E150d)and natural flavourings. The exact formula of the natural flavourings is secret with only the two executives having access to it, it is even stored in a main bank vault!.
It is sold in 200 countries worldwide and is made all over the world from India to America to G.B.
On June 27th 2010, 3 men were killed and at least 5 were seriously harmed in a bottling plant in Khurda in the state of Orissa, India. The men were put in danger when the boiler they were working on exploded. Company officials were out to lunch when the explosion happened, 3 officials from the Coca-Cola bottling plant who were in charge of the maintenance operations have been arrested. They say the boiler was old and a new boiler was undergoing tests before it replaced the other one.
What are they going to do?
The State of Kerala has passed legislation so workers who have been negatively impacted by Coca-Cola can ask for compensation. The Government is also asking for 48 million U.S. Dollars to compensate for all the damage it has done. These damages include water and air pollution, loss of agricultural crops and animals, diseases affecting human beings in the surrounding area due to the excess drawal and pollution of groundwater and surface water . They are also being asked to shut down the bottling plants in Kerala.