Transnational Corporations A corporation or enterprise that operates in more than 1 country (can be called a multi-national too) (can be called a multi-national.

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Transnational Corporations A corporation or enterprise that operates in more than 1 country (can be called a multi-national too) (can be called a multi-national too)

Top 10 non-banking TNCs - sketch the table 1GEUSA Aero, eng 2VodafoneUK? 3FordUK? 4BPUSA? 5GMUK? 6ShellUSA? 7ToyotaNeth/UK? 8Total/ElfJapan? 9FTFrance? 10ExxonFrance?

Features Large, wealthy organisations Large, wealthy organisations HQ in 1 country, branches across world HQ in 1 country, branches across world Improvements in transport and communications Improvements in transport and communications HQ in richer areas (Japan,USA) with research and development HQ in richer areas (Japan,USA) with research and development Production in poorer areas with lower labour costs, lenient laws or government wants investment Production in poorer areas with lower labour costs, lenient laws or government wants investment

Features 1. Large, _ _ _ _ _ _ _ organisations 2. HQ in 1 country, branches across _ _ _ _ _ 3. Improvements in transport and communications have made them rich. 4. HQ in _ _ _ _ _ _ areas (Japan,USA) with research and development 5. Production in _ _ _ _ _ _ countries with lower labour costs, lenient laws or where a government wants investment

TNCs and GDP 2012 Revenue in $billions per TNC Revenue in $billions per TNC Wal-Mart-USA=244 Wal-Mart-USA=244 Nestle=49 Nestle=49 Coca Cola-USA=21 Coca Cola-USA=21 Gap-USA=15 Gap-USA=15 Nike-USA=11 Nike-USA=11 Total wealth produced in $billions per country Total wealth produced in $billions per country Bangladesh=259 Bangladesh=259 Tunisia=68 Tunisia=68 Ghana =44 Ghana =44 Jamaica=10 Jamaica=10

Advantages Disadvantages Provide jobs/wages Provide jobs/wages Income benefits local businesses-multiplier effect Income benefits local businesses-multiplier effect Training-skills Training-skills New technology New technology Money to invest Money to invest Improved infrastructure and comms. Improved infrastructure and comms. Leakage-profits taken out of host country Leakage-profits taken out of host country Low wages Low wages Key jobs to outsiders Key jobs to outsiders Branch plants may close Branch plants may close Poor work conditions Poor work conditions Safety compromised Safety compromised Health jeopardised Health jeopardised Air, water pollution Air, water pollution