TNC(Transnational Corporations)

economically powerful and politically influented.Bring costs and benefits to bouth the source and host countries
Example:McDonalds
1. reduce resource consumption
  1. about 30%packaging is now recycled
2. in the Uk,McD edvertises all of its milk as as organic and along with beef.Everything from British or Irish farms
  1. Consumers value this local source of ingredients
3. In Australia and New Zerland stand alone McCafes complete with coffe shop chains
4. menus are adapted to local tastes
  1. halal meat and McArabia chicken wraps in the Middle East
  2. vegetarion options in Hindu India
Positives of TNC's
1. Jobs:2,000 + technology workers in Bangladore are employed
2. Trade:China's economic growth,locating manufacturing plants (Free Trade Zone)
3. Connections:complex global networks create connectionsthat tie local and national economies into global system
Negatives of TNc's
1. Exploitation:exploiting workers in the developing world by paying low wages in sweatshop conditions
2. Unemployment:outsourcing jobs to the developing world can lead to job losses in developed countries
3. Identity:local cultures and traditions can be eroded by TNC brands
Transnational Tesco
1. 60%profits from Asia
2. 1,250 overseas stores and employs more than 450,000people
3. over 10 years Uks leading TNC
4. 2.7billion profit in 2006
The case against TNCs
1. Tax avoidence:may avoid paying full taxes in the countries where they operate
2. Limited linkages:FDI does not always help developing countries(links are made with local firms(raw materials) then more wealth may be generated)
3. Growing global wealth divide:Asia-Africa in creating new geography of have and have-nots
4. Environmental degredation:Methyl isocynate gas was emitted from the pesticide plant in Bhopal,Indiaowned by TNC(thousands deaths)
The benefits of TNCs
1. Raising living standardsinvest economies of developing countries.Risin wages,spread wealth.FDI helped China to overtake The UK and France
2. Transfer of technology:South Korean firms(Samsung) have learned a new design
3. Political stability:In Europe and China investment by TNCs has contributed the economic growth and political stability.While in Africa instability(civil war) distance from market
4. Raising environmental awareness:have a corporate image to uphold,they sometimes do respond to criticism

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TNC(Transnational Corporations)

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