The Rise of Transnational Corporations Part II: The Production Mode.

Slides:



Advertisements
Similar presentations
Rise of transnational corporations Part III: Reasons for global expansion.
Advertisements

Geography Department, St. Michael’s School Industry.
Transnational Companies.
Business in a Global Economy
SYLLABUS TOPIC 2 URBAN PLACES World Cities Mega Cities Urban Dynamics including case studies of -a large city (Sydney) - suburb (research project) - large.
The State in the Global Economy. What role does the state have in the global economy? They regulate their own economies e.g. laws, taxes. Influence the.
Multi-national Corporations & Global Production. Multi-national Corporations Facts about Multi-national Corporations (MNCs) By the end of 1990s, produced.
Latin America & East Asia Compared Lecture # 12 Week 6.
Agenda for November 2 Review of Chapter 8 International Strategy
Globalization An international system Replaced Cold War system (’89)
Transnational Corporations and Economic Dependency
Business Location A2 Business Studies. Aims and Objectives Aim: Understand the quantitative and qualitative location factors Objectives: Explain quantitative.
DENSO in Figures –Consolidated (DENSO Group). DENSO Corporation Established: Dec. 16, 1949 Capital: US$1.6 billion Net Sales: US$35.9 billion Net Income:
Definition of Globalization Globalization is the system of interaction among the countries of the world in order to develop the global economy. 1. It refers.
International marketing
Multinational Corporations
Chapter 18 Foreign Trade December, Procedure 1. Summary of chapter Students’ presentations 3. In-class activities.
Read to Learn Describe free trade. Indicate who benefits and who does not benefit from free trade.
Globalisation Today…. Nature and trends in globalisation: – Growth of global trade – Globalisation of production – Changes in the financial, labour.
Economic World Case Study
GLOBALIZATION OF ECONOMIC ACTIVITY
Business in a Global Economy. Read: You may not know it but you’re a part of the global marketplace. You might buy clothes made in Taiwan. Turnover your.
Newly Industrialised Countries
The United States & The Global Economy Chapter 6.
14 September 2015 Economic Development 5 – NIC’s and the Four Tigers.
Global/International Marketing MR1100 Chapter 7. What is International Marketing? International Marketing is the Marketing across international boundaries.
Chapter 1 Globalization McGraw-Hill/Irwin Global Business Today, 4/e © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. Globalization.
Chapter 1 Globalization McGraw-Hill/Irwin Global Business Today, 4/e © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. Globalization.
Globalization of Manufacturing Changing distribution of Manufacturing Percentage of more economic developed countries decreases Decentralize to less.
Strategic Management Fit: The Enabling Role of Alliances for an individual Firm.
ARE PHARMACEUTICAL CORPORATIONS HEROES OR VILLIANS? 2 Lessons
Interdependence of Nations. 1.Trade 2.Globalization 3.Child Labour.
Transnational Corporations Transnational Corporations (TNC) are large companies that operate in more than one country. Can you think of some examples?
International Business Part I BCS-BE-8: The student analyzes how international business impacts business.
Steen/Noe et al., © 2013 McGraw-Hill Ryerson HRM in a global environment The environment in which organizations operate is rapidly become a global one.
International Business Part II BCS-BE-8: The student analyzes hoe international business impacts business.
Future Development of Asian Electronics Industry May 17, 2004 Japan Electronics & Information Technology Industries Association.
Global/International Marketing MR1100 Chapter 7
 Core & Periphery Relations.  The Global Economy – Basic features Single World market – Producers produce to exchange rather than use. Price is determined.
Revision seminar. Compare the roles of different economic flows in the transfer of capital from core to periphery.
Globalisation Dyson Ltd Simon Saunders. [1][2][3][4]
Managing in a Global Environment
TNC’s Role in Globalisation
3 The Global Economy The growth in world trade A multinational company The global nature of trade and the three key global economic areas Globalisation.
Topic 1 Topic 1 The Global Economy The global economy The global economy can be divided into a four main categories: Advanced Economies Emerging Economies.
To analyse the advantages and disadvantages of Nike as a TNC
Globalisation Today…. Reasons for international expansion 1.Increasing sales and finding new markets 2.Acquiring resources and technology 3.Diversification.
Going global Global groupings
Copyright © 2005 Pearson Education Inc. The Global Marketplace Chapter 18 PowerPoint slides Express version Instructor name Course name School name Date.
TRANSNATIONAL CORPORATION (TNCs) Nguyen Thuy An Nguyen Thi Lan Anh Tran Quoc Vy Ngo Nguyen Minh Hang Van Thi Ngoc Dung Nguyen Tuong Dat.
When you have completed this chapter, you will be able to: Explain why countries trade. Explain why companies export and import. Explain how and why countries.
For use with Business in Context 6e by David Needle © 2015 Cengage Learning EMEA Ltd 2A.0 MULTINATIONALS AND JOINT VENTURES  Characteristics.
Lesson 3- OUTLINING THE ROLE TNCs PLAY IN CREATING A MORE GLOBALISED WORLD What do all these companies have in common?
CONCEPT OF MULTINATIONAL COMPANY
TNCs Lesson Aims: 1.To know what TNCs are and some of their key characteristics. 2.To understand some of the main positive and negative features of TNCs.
Globalisation 2: Transnational corporations
Globalization An international system Replaced Cold War system (’89)
Spatial aspects of Development
Foreign Direct Investment (FDI)
Chapter 10: Business in a Global Economy
Published: September 2017 Single User PDF: US$ 2500 No. of Pages: 163
Click here to advance to the next slide.
The Globalization of Industry
AP HUMAN GEOGRAPHY CH 25n 23o CLASS NOTES
Globalisation.
International Factor Movements
Based on political orientation Based on geography
Read to Learn Describe free trade. Indicate who benefits and who does not benefit from free trade.
TNC Research You need to know a case study of a TNC:
Presentation transcript:

The Rise of Transnational Corporations Part II: The Production Mode

Transnational Corporation TNCs often have 3 organizational levels  headquarters: control & policy making  R&D: design new products  branch plants: routine production

Headquarters and R&D The headquarters and R&D are usually in the home country i.e. in the industrial core / global core (MEDCs) NICs of SE Asia.

Headquarters Headquarters are usually located in large cities in MEDCs -- for reasons of prestige & status -- to facilitate person to person contact in the exchange of information. -- agglomeration economies achieved through proximity to business services such as banks, advertising agencies

R&D R&D tend to be located in less central locations or smaller urban centres (environmentally attractive areas) to -- attract specialist labour, scientists (in university) -- avoid high taxes

Branch plants They are found overseas (host countries) -- in the industrial periphery regions (LEDCs) --in the MEDCs e.g. Britain.

Branch plants They are more footloose. Its location is linked to -- availability of cheap labour, in developing countries -- exploiting new resource locations -- tap market potentials in other parts of the world -- avoid trade barriers between countries. By locating production overseas, they can get round trade barriers (quotas, tariffs) designed to protect home market. -- low taxes -- avoid strict domestic environmental regulations -- exchange rate advantages

Generalised model of a TNC

Philips International Royal Philips Electronics of the Netherlands is one of the world's biggest electronics companies, as well as the largest in Europe, with 159,000 employees in over 60 countries and sales in 2005 of Eur billion. R&D is mainly done in Europe and USA and branch plants are found in South America and Asia.

GlaxoSmithKline Headquartered in the UK and with operations based in the US, GlaxoSmithKline are one of the industry leaders, with an estimated seven per cent of the world's pharmaceutical market. R&D is done in the UK, USA, Spain, Italy and Japan. Branch plants are found in Kenya, Australia, Indonesia and Malaysia.

Conclusion However some of the largest and most successful TNCs have divided their industrial empires into world regions, each with R&D facilities and a high level of decision making By 1997, there were 150 Japanese R&D centres in Britain