Geography Unit 1: Global Challenges - Section B Model Answer (May 2011)

Suggest why some people and not others benefit from the growth of Transnational Corporations - (10 marks)

Transnational Corporations are large global companies like Mcdonalds. Some TNCs turnover is higher than the GDP of many countries, for example, Shell Oil. TNCs fuel globalisation as they allow products to be shared across the world and this brings countries closer, making us into a 'global village'. Some people may view this a positive effect, as it unifying countries, however other people believe that the shared common interests forming from globalisation is putting the world through 'Americaanisaton' causing nations to lose their identity.

TNCs often work with the media, and have power over what people buy, eat, use and drink. For the TNCs themselves this is an advantage because it means they will keep earning money as long their consumers still demand their products. However, some governments may feel threatened by the power of the TNCs.

Supermarkets, like Tesco, are TNCs and are successful in todays market. Their overwhelming success comes from how they meet the demands of todays individualistic society in economic downfall. They are conviniently located with available parking and have cheap prices. It is also more convinient for people to buy all their food and non-food items in one place rather than in multiple stores. This saves on fuel and travel time. As convinent and easy as this concept is, there are many problems involved. The suppliers for TNCs are often undermined and have to sell for cheap prices to keep the deal with the supermarket. This then leads to the production workers getting the smallest percetage from the sale of each good, and this amount is usually below minimum wage and not suffecient for the workers to live off. Suppliers also cut costs by depriving workes…