1. TNC Research You need to know a case study of a TNC:
Who are they? What do they do? When did they set up? Brief company background (don’t copy & paste!) Employment data and turnover data. What is made/ produced/ sold?
Where do they operate? Global network: map and description to show where they operate (factories, HQ’s, shops)
Why did they set up here? Explain reasons for location of HQ & factories
How have they had an impact on the world? What is good/positives? What is bad/negatives? Consider economic, social and environmental impacts. Host and source country.
How has the TNC had an impact on global trade, wealth and development?

2. which operates and has ownership of assets in more than one country.
A transnational corporation (TNC) is simply a large business organisation
which operates and has ownership of assets in more than one country.
Who am I?

3. Toyota

4. How do TNC’s impact the world?
Evaluate
the impacts caused by TNC’s and suggest their significance on global trade and the development of countries
Know – what TNC’s are
Understand – how they have an impact on global trade and development B
Explain the impacts of TNC’s and analyse how they affect global wealth
C-D
Describe what a TNC is, using a case study, and consider how they have accelerated globalisation

5. How do TNC’s impact the world?
What is a TNC?
A TNC or Trans National Corporation is a company that has operations in more than one country.
They have grown by buying up foreign firms in mergers and acquisitions. Eg. Kraft buying Cadbury
Much of their manufacturing is subcontracted.
They link together groups of countries through the production of goods (most manufacturing TNCs are ‘assembly industries’).
They also forge connections between people in different countries by shaping common patterns of consumption.

6. How do TNC’s impact the world?
To be closer to their separate markets (these may need to be served differently, depending on cultural needs – ‘glocalisation’)
To operate where labour is cheaper and less regulated e.g. Pay below minimum wage.
Reasons for the global nature of TNCs
To spread the risk (e.g. Those associated with industrial action or crop failure).
To operate inside local trade barriers, such as tariffs and quotas increasing profits.
Why do TNCs exist?
Global markets exist for many products and services and those organisations
with sufficient capital and expertise have established branches or affiliates
in new countries. TNCs usually establish overseas branches in order to:
• Gain access to new markets
• Extend existing markets to match competitors
• Provide export platforms
• Avoid trade barriers
• Diversify production
• Reduce production costs e.g. by gaining access to cheaper labour
• Exploit economies of scale in order to out-compete smaller national,
regional and local manufacturers
All of this has been hugely accelerated by cheap and efficient global
communication networks which have allowed organisations to control the
activities of dozens of affiliates via one head office - usually in a developed
country - where management, marketing and research and development
expertise is concentrated. TNCs have achieved vertical integration -
where a business buys its suppliers or customers in order to increase
control over them. When any particular organisation's customers or
suppliers are in another country, then this organisation will automatically
become a TNC.
To gain grants and other rewards from national governments who are trying to attract inward investment.

7. How do TNC’s impact the world?
How do they affect global wealth?
TNCs bring Foreign Direct Investment to nations – even if wages are low workers will still spend money after they have been paid = stimulates growth of other local services
When TNCs locate in a trade bloc they bring wealth to poorer regions as they often source parts locally
One of the most effective mechanisms for wealth redistribution

8. How do TNC’s impact the world?
Many TNCS have both positive and negative impacts on the global market place.
Sort the statements into
Positive ( + ) or negative (-) impacts of TNC’s
Decide if they are Social, Environmental, Economic, Political factors
Would this have a bigger impact in the source or host country?
READ PAGE 107 In Phillip Allen

9. How do TNC’s have an impact on the environment?
How will this impact on global trade and development of countries?
Do you think they have a + or – impact on the environment?

10. Bhopal,India
One of the greatest Environmental disasters took place on 2nd December 1984 when toxic gas leaked from a Union Carbide factory killing between 3,800 and 15,000 people.

11. How do TNC’s impact the world?
Explain the negative impacts of TNC’s.
Explain the positive impacts of TNC’s.
Judge whether TNC’s have a bigger positive or negative impact on the world.
Examine how TNC’s have an impact on the distribution of global wealth and trade.
Suggest how TNC’s have an influence on the economic development of countries.
Decide how significant TNC’s are in the world.
What if TNC’s didn’t exist?
READ PAGE 107 In Phillip Allen

13. Glocalisation: The adaptation of a global product for a local market place. Globalisation: The spread of economic, cultural and social ideas across the world. Localisation: The act of operating locally in terms of employees, product, supply of raw materials, etc.

15. What are you going to include?
Definition of key term
Reason(s)
Explanation(s)
Example of company/product and where

16. How do you interprete this cartoon?