1. Trans National Corporations

2. TNC’s – True or False?
Which statements about globalisation and TNCs are true and which false?
Just 500 corporations account for two-thirds of international trade
Of the world’s 100 largest economies, 50 are TNCs
Global wealth doubled from US$14 trillion to US$28 trillion in 10 years. According to the World Bank, this wealth has reduced global poverty
The 10 largest TNCs have a total income greater than that of 100 of the world’s poorest countries
Unilever’s corporate sales were US$49.7 billion in In the same year, Egypt’s GDP was S$43.9 billion
About 40 countries are poorer today than they were 20 years ago
Adapted from: globalization_quiz.htm and

3. TNC’s – True or False? Answers True
Global wealth did double in a decade, but this didn’t reduce world poverty –‘In a single day under globalization, poor countries lose nearly US$2 billion due to international trade, 30,000 children die from preventable diseases, and US$60 million drains from poor countries to rich ones through debt payments.’ (Source:
4. True
False – about 60 countries are poorer

4. To Know what transnational corporations (TNC’s) are
Objectives
Objective:
To Know what transnational corporations (TNC’s) are

5. Transnational corporations (TNCs): business organisations whose activities take place in several nations
What are TNCs?
This shop is located in
Kibera, a shanty town
near Nairobi, Kenya
Coca-Cola is one of the best known brands in the world
The Coca-Cola Company is a TNC with operations in over 200 countries
Photo: Kevin Cook, GAIWG

6. The Country of Geowesome
A big TNC would like to build a large production facility near to the city of Awesome in the LEDC of Geowesome
The Country of Geowesome
Population: 18 Million Capital City: Geo Raw Materials:
60% of population live on less than US$2 per day
Unemployment is 23%, 46% in Awesome, the second biggest city
The road and transport infrastructure is very poor
Economic Impacts: Positive
Economic Impacts: Negative
Social Impacts: Positive
Social Impacts: Negative
Awesome
Environmental Impacts: Positive
Environmental Impacts: Negative
Geo

7. The Country of Geowesome
Why would a TNC want to set up in Geowesome? List some of the advantages the TNC may experience. (Why set up in Geowesome and not in it’s home country?
Population: 18 Million Capital City: Geo Raw Materials:
60% of population live on less than US$2 per day
Unemployment is 23%, 46% in Awesome, the second biggest city
The road and transport infrastructure is very poor
What do you think the TNC will have to think about? (What things may it have to put in place or guarantee if it sets up in Geowesome?
Awesome
Geo
If you were in charge of the TNC’s decision, what agreements might you be looking to make with the government?

9. Can you spot value?
Which statements about globalisation and TNCs are true and which false?
Arrange these logo’s in a ranking order from lowest to highest value of company

11. Yahoo is bigger than Mongolia. Mongolia's GDP: $6. 13 billion
Yahoo is bigger than Mongolia. Mongolia's GDP: $6.13 billion. Yahoo's Revenue: $6.32 billion. Yahoo would rank as the world's 138th biggest country. Source: Fortune/CNN Money, IMF

12. Visa is bigger than Zimbabwe Zimbabwe's GDP: $7.47 billion
Visa's Revenue: $8.07 billion
Visa would rank as the world's 133rd biggest country.
Source: Fortune/CNN Money, IMF

13. eBay is bigger than Madagascar.
Madagascar's GDP: $8.35 billion eBay's Revenue: $9.16 billion
Ebay would rank as the world's 129th biggest country.
Source: Fortune/CNN Money, IMF

14. Nike is bigger than Paraguay
Paraguay's GDP: $18.48 billion Nike's Revenue: $19.16 billion
Nike would rank as the world's 102nd biggest country.
Source: Fortune/CNN Money, IMF

15. McDonald's is bigger than Latvia
Latvia's GDP: $24.05 billion McDonald's Revenue: $24.07 billion
McDonald's would rank as the world's 92nd biggest country.
Source: Fortune/CNN Money, IMF

16. Amazon.com is bigger than Kenya
Kenya's GDP: $32.16 billion Amazon.com's Revenue: $34.2 billion
Amazon would rank as the world's 86th biggest country.
Source: Fortune/CNN Money, IMF

17. Pepsi is bigger than Oman
Oman's GDP: $ Pepsi's Revenue: $57.83 billion
Pepsi would rank as the world's 69th biggest country.
Source: Fortune/CNN Money, IMF

18. Bank of America is bigger than Vietnam Vietnam's GDP: $103.57 billion
Bank of America's Revenue: $ billion
Bank of America would rank as the world's 59th biggest country.
Source: Fortune/CNN Money, IMF

23. Which TNC would you like to research?
You will work as a class to research one TNC
Which TNC would you like to research?
Why does this TNC interest you?
Decide on one TNC to research as a class
Your group will carry out Internet research on this TNC. You will use one of de Bono’s six – red, green, blue, white, yellow or black – hats to direct your thinking
n Note which hat your group has been given on Activity sheet

24. Each group will be given a different coloured hat
de Bono’s six hats
Each group will be given a different coloured hat
Each hat is labelled with a different perspective
The next six slides show which perspective your group will use to research the TNC
Photo: Catherine Owen

25. Blue hat You will focus on the organisation as a whole:
Who runs the TNC? How do they run it?
What’s the big picture?
What about accountability? Who keeps an eye on the activities of the TNC?

26. White hat You will focus on data:
What data do you have on the TNC? If there are any gaps, how do you account for these gaps?
What information is most obvious on the TNC’s website? Why might the TNC want you to know this?
Is any information hard to find? Why?

27. Yellow hat
You will focus on the positive, thinking about the benefits and advantages of the TNC’s activities:
What benefits does the TNC bring to its employees?
What benefits does the TNC bring to its customers?
How do shareholders benefit from the TNC’s activities?

28. Black hat
You will focus on the negative, thinking about the problems, drawbacks and flaws:
Are any groups of people unhappy about the activities of your TNC? Why?
Is there any evidence of your TNC exploiting its workers in LEDCs and NICs?
Does your TNC cause problems for the environment?

29. Red hat You will focus on the emotions:
How might people respond emotionally to the TNC’s activities? How might this change from place to place?
Which, if any, pressure groups have protested about the activities of the TNC?
Do people in MEDCs and LEDCs have different views about the TNC?

30. Green hat
You will focus on creativity, the possibilities and new ideas:
What do you think the future holds for the TNC?
How do you think the TNC should change in the future?
Think about any of the TNC’s activities that cause concern – are there alternatives?

31. Research and presentation
Carry out research in your group, focusing on the area allocated to you by your ‘hat’
Note the key points of your research in your row of the grid on
Share your group’s findings with the class and note the other groups’ key points on

32. Written Discussions
n Has the growing influence of TNCs in world trade improved your quality of life or not?
Do you think other people around the world would feel the same way as you?
Write a commentary on what TNCs mean to you. Try to be balanced and think of both positives and negatives, whatever your viewpoint.

33. Objectives
Know what transnational corporations (TNCs) are
Be able to use Edward de Bono’s coloured hats to investigate an issue from different perspectives
Understand that different people view TNCs in different ways