The company sells over 400 brands in over 312 countries or territories. 90 billion servings of Coke’s products are consumed each day. 1.7 billion of these are regular coca cola

In 2010, The Coca ‑ Cola Company's turnover was $35 billion. This means it’s goods are sold very quickly!

A multinational company is one that operates in more than one country across the world.

Apart from operating in more than one country, multinationals also have a number of other characteristics… Well known brands Huge Profits Large employers Headquarters mostly in MEDC countries. Atlanta, Georgia, USA $24 billion dollars 71,000 people worldwide

An increase in the flow of goods, services, people, capital across national borders in order to create a more integrated and interdependent world economy. The term globalisation is contested, a general definition is… Basically the World is shrinking!

Improved transport means that people and goods can be moved around the world more quickly. Distance between places hasn’t changed, but the time needed to cover those distances has.

Improvement in technology, such as the internet, has meant that capital (money) can be transferred instantly between locations. People can also use telephones and the internet to communicate more easily in ‘real time’.

Improvements in technology have also lead to the development of a mass media, television, radio and internet, far off places now seem much closer… we can even see them in real time.

Bottled in 200 countries across the world.

Manufacturing your product in the country you sell it has a number of advantages.

Labour costs may be lower in some countries, especially LEDC countries. Low labour costs = higher profits.

Manufacturing your product in the country it is sold reduces transport costs. Less transport = higher profits.

Legalisation on working conditions, workers’ rights, health and safety, and the environment may be less strict in some countries. Relaxed legalisation = lower overheads= more profit.

Some countries may try to encourage multinationals to invest in their country by offering lower tax rates and financial incentives. More favourable taxation = lower overheads= more profits.

It widens your market. More consumers= more profit. /

The status of your brand is raised. More status = more consumers = more profit

Producing your product in a country and adapting to the local market makes it seem more ‘local’. More local = more consumers = more profit

Strong bargaining position and can negociate favourable conditions for setting up in a country Governments offer incentives to encourage MNC’s to locate there Labour costs lower in LEDC’s Coca cola don’t own factories, they subcontract They want access to high earning populations by manufacturing close to their intended market they can reduce transport costs Advantages of being an MNC

+ effects MNC’s have on host country Creates jobs directly and indirectly Many of the bottling plants are local firms so profit stays in country MNC’s offer training MNC’s promote their image and coca cola runs community schemes in Africa & Asia. E.g microfinance scheme giving 4000 vietnames women training, equipment and merchandise to sell coca cola MNC’s attract other MNC’s to the host country

Negative effects Low paid, low skilled work takes place in LEDC’s If MNC experiences problems the overseas branches first to close or have cut backs Water shortages as 2.5L for 1 L of coke - e.g Kerela! MNC’s can pull out at any time and leave people with nothing Enviro reg’s less strict in LEDC’s Profits go to coca cola and shareholders not country Working conditions can be very poor long hours for little pay. Few benefits and no unions