Trans-National Corporations (TNC's)

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Pg142
Adam Collinge
Flashcards by Adam Collinge, updated more than 1 year ago
Adam Collinge
Created by Adam Collinge over 10 years ago
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Question Answer
What are TNC's? Companies that produce products, sell products or are located in more than one country
How do TNC's increase globalisation? By linking together countries thorough the production and sale of goods
What else can TNC's do to other countries? Introduce new cultures, e.g McDonald's introduces Western food in the East
Give another name for TNC's Multinational companies (MNC's)
What is the multiplier effect? The cycle of more jobs, which leads to an increase in services, which leads to more jobs
How do TNC's effect economic development? TNC's create jobs in the area which increases the wealth of the area (taxes) and the wealth of the local people. The taxes are used to improve infrastructure and services and people have more money to spend. This attracts new TNC's to the area creating more jobs
Why do TNC's look for cheap labour? Because they get more profit
Why are TNC HQ's and resurch centers usually in MEDC's? Because more people are skilled and educated in those areas
Give six advantages for TNC's 1) They create jobs in all the countries they're in 2) Employees in LEDC's get a reliable income 3) When in poorer countries, they create skilled jobs 4) They spend money to improve the local infrastructure 5) New tech and skills are brought to LEDC's 6) Local companies supply them, increasing their income
Give six disadvantages for TNC's 1) LEDC workers may be paid less 2) LEDC workers may have to work longer 3) Most TNC's come from rich countries so the profits go back there 4) Large sites will increase pollution 5) LEDC jobs created by TNC's aren't secure- The TNC could relocate 6) Local companies may struggle to find business
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