TNC Coca Cola in India

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  • Created by: KatieTho
  • Created on: 21-05-14 21:09

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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