If you did a quick survey of the items in your house and count up the different examples of TNCs you would be surprised by how many are in your home. I counted mine and came up with 55 different TNCs. Our lives have ben made better and it can be claimed as being run by them.
\nYou need to be able to explain what they are, where they operate and the advantages and disadvantages they bring.
\nCharacteristics of TNCs
\n\u00b7 Transnational Corporations (TNCs) are
\nlarge wealthy corporations
\n\u00b7 They are companies that have their headquarters in one country
\n\u00b7 They often have factories and other branches spread all over the world
\n\u00b7 Most TNCs have their headquarters in richer areas of the world
\n\u00b7 Research and Development usually takes place in the richer country
\n\u00b7 Production of goods usually takes place in poorer
\nareas
\nAdvantages of TNCs to poor countries
\n\u00b7 Can develop mineral wealth and improve energy production
\n\u00b7 TNCs can invest in big projects like dams to provide HEP
\n\u00b7 The money earned by local people goes into the local economy \u2013 multiplier effect
\n\u00b7 Local peoples education and skills can be improved
\n\u00b7 Local infrastructure such as road and
\nairports can be improved
\nDisadvantage of TNCs to poor countries
\n\u00b7 Local people may be paid low wages
\n\u00b7 Few of the managers are local
\npeople
\n\u00b7 Most of the profits go abroad \u2013 Leakage
\n\u00b7 They can cause pollution \u2013 air and water
\ndue to lower regulation
\n\u00b7 Most of the minerals extracted are
\nexported
\n\u00b7 TNCs might pull out with little warning \u2013 recession
\n\u00b7 Poor working conditions \u2013 long hours with little time for breaks
\n\u00b7 Safety can be compromised where laws are less stringent and workers\u2019 health can be jeopardised
\nHow can TNCs cause globalisation?
\nTNCs have been at the forefront of driving globalisation over the world. By setting up factories and businesses they are spreading information and businesses around the world.<\/p>\n","protected":false},"excerpt":{"rendered":"