Transnational Corporations

TNCs Just from thinking about what you are wearing or have in your bag, it is clear that they were manufactured in a variety of countries, this is a really good example of globalisation How many countries can we list just from what you have on you today?

How are TNC organised? TNC may build there businesses up by buying foreign firms in mergers or acquisitions Manufacturing work is subcontracted to third parties which makes it hard to enforce working conditions in factories where global brands are made Most manufacturing TNCs are assembly industries which rely on a chain of suppliers The car industry is a perfect example of how a production line relies on thousands of different parts that are then assembled in one location. The car industry was also the first real TNC when Henry Ford started mass producing cars on an assembly line over a 100 years ago

Can we map TNCs? Russia China It is incredibly difficult to map the geography of a TNC This is because the largest TNCs often have offices, factories or shops in every country Because of these complex networks, it is important to remember that TNCs still have to belong to somewhere i.e. they are registered to a particular place Although TNCs may operate all over the world, most TNCs promote common patterns of consumption i.e. they sell the same, or similar product everywhere. Though they may tweek the products slightly French Canada Argentina

So lets look at an example of a TNC Tesco is not just located in the UK (as I’m guessing many of you had thought!) It is now a global empire worth around £67 billion a year

Tesco Troubles This is Tesco’s latest venture – a health food chain in the USA So far invested $700 million Initial sales were down by a reported 70% It is also believed that due to this investment Tesco is now struggling to compete with the growth Asda has seen in the UK

Are TNCs a good thing? There are different opinions about whether TNCs actually benefit or hinder countries in which they operate As well as just countries, we need to think globally, and what differing opinions there are about their effect around the world