TNCs play an important role in the g----- e------. In 2013, --% of global t---- was linked TNCs.
global economy
80
trade
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extracting natural resources e.g. oil and gas.
primary industry
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What is the secondary industry?
making material goods e.g. Toyota manufactures vehicles.
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what is the tertiary industry?
providing services e.g. cinemas or hairdressers.
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What is the general spatial organisation of a TNC?
Headquarters - big cities in developed countries.
Research and development - in cities and towns where there is a good supply of highly educated people e.g. scientists.
factories - developing countries where production costs are cheap e.g. labour and manu
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What is a merger?
when 2 companies usually of a similar size agree to become one bigger company. This can good for trade links, making more money.
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What is an aquisition?
when a company buys another company (usually smaller).
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TNCs expand their operations to gain more control over their markets. They can achieve this in 2 ways. What is vertical integration?
when a company takes over other parts of its supply chain, so they control each part of the product's 'journey'.
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What is horizontal integration?
when a company merges with or takes over another company at the same stage of production e.g. a retail chain takes over another retail chain.
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Card 2
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TNCs play an important role in the g----- e------. In 2013, --% of global t---- was linked TNCs.
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