TNC - A transnational corporation that operates in more than one country across the world - tend to be large weathy organisations.
Reasons for Coca Cola to locate factories in India?
- Lower labour costs in LEDCs (low labour costs = higher profits)
- Reduces transport cost (low transport cost = higher profits)
- Working conditions are less strict (relaxed legalisation = lower overheads = more profit)
- Countries try to encourage multinational companies to invest in them (Indian states offered subsidized water, lower tax rates and financial incentives.)
- Widens market (more consumers = more profit)
- Brand status is raised
- Can adapt product to fit in with local market making it more 'local'
GLOBAL INCREASES PROFIT
Evidence Coco Cola is a TNC
- Headquarter is in a MEDC country - Atlanta, USA.
- Owns over 400 brands in over 300…
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