1. Rise of transnational corporations A process of globalisation

2. What are TNCs? Also known as multi-national companies They are very large firms which market their products globally. And have branches in several countries They are capitalist enterprises that engage in foreign direct investment (FDI) and organize production of goods and services in more than one country.

3. How important TNCs are? By 1966, TNCs controlled 1/5 of world’s manufacturing, compared with over 50% in late 1990s. In 1998, there were 53,000 MNCs With 450,000 foreign subsidiaries Of global sales over $9.5 trillion They control over 75% of the world trade 20% of global foreign assets Employ 6 million workers Account for 30% of all world sales

4. Recent trend of TNCs The no. of TNCs are falling But increasingly giant TNCs are rising They enjoy economies of scale as individual TNCs have merged with others Control in the hands of very few people

5. 2 ways that TNCs grow Natural growth = effective creation of products which sell well (companies invest profit into R&D of new products) Merging = usually merging with business of similar nature or different production lines (known as conglomerates)

6. Conglomerates An example is Itochu Its products include goods in textile & apparel, finance & logistics, food & general merchanise, metals, machinery, aerospace & electronics, and chemicals & plastics.

7. Conglomerates Its more common trading names include -- Compaq computers -- Fashion names : Dunhill, Emporio Armani, Vivienne Westwood.