Account for the growth of TNCs and evaluate their impacts at the global and national scales
Account for the growth of TNCs and evaluate their impacts at the global and national scales (40 marks)
A TNC (transnational corporation) is a company that operates in no less than two countries and has a global outlook. TNCs have a long history going back to the 16th Century in terms of trade such as spices, but it’s not until C. 1945 that companies started to form acquisitions and mergers. The one key reason why these businesses have been so successful in their area of expertise globally is because they can take advantage of spatial differences in the factors of production worldwide. They are able to exploit differences in the availability of capital, labour costs and land cost, which we as a world have seen, especially in far-east Asia.
An example of a multinational company is Coca-Cola - a soft drinks manufacturer who is situated in Atlanta Georgia, USA where their headquarters are located. Coca-Cola is probably the best-known brand symbol in the world, and because of this has been very successful in branching out to over 200 counties. The expansion of Coca-Cola overseas took place in 1923 and ever since then the company’s presence worldwide has grown rapidly, and year after year, Coca-Cola found a home in more and more places: Cambodia, Montserrat, Paraguay, Macau, Turkey and more. Other TNCs include Vedanta Resources PLC in Orissa India; the Indian businessman, Aril Agarwal, founded it. He started his business 30 years ago in Mumbai, collecting and reselling scrap metal, and now it’s a global diversified metals and mining company. And Dyson, the UK company which pioneered the “bagless” vacuum cleaner, has erupted and James Dyson the inventor and founder is now worth an estimated £3bn.
Accounting for the growth of TNCs: their global outlook has increased rapidly over the past 30 years or so; this might be down to numerous reasons. Governments in NIC (newly industrialised countries) have desperately tried to appeal to every wealthy and powerful TNC,
A TNC (transnational corporation) is a company that operates in no less than two countries and has a global outlook. TNCs have a long history going back to the 16th Century in terms of trade such as spices, but it’s not until C. 1945 that companies started to form acquisitions and mergers. The one key reason why these businesses have been so successful in their area of expertise globally is because they can take advantage of spatial differences in the factors of production worldwide. They are able to exploit differences in the availability of capital, labour costs and land cost, which we as a world have seen, especially in far-east Asia.
An example of a multinational company is Coca-Cola - a soft drinks manufacturer who is situated in Atlanta Georgia, USA where their headquarters are located. Coca-Cola is probably the best-known brand symbol in the world, and because of this has been very successful in branching out to over 200 counties. The expansion of Coca-Cola overseas took place in 1923 and ever since then the company’s presence worldwide has grown rapidly, and year after year, Coca-Cola found a home in more and more places: Cambodia, Montserrat, Paraguay, Macau, Turkey and more. Other TNCs include Vedanta Resources PLC in Orissa India; the Indian businessman, Aril Agarwal, founded it. He started his business 30 years ago in Mumbai, collecting and reselling scrap metal, and now it’s a global diversified metals and mining company. And Dyson, the UK company which pioneered the “bagless” vacuum cleaner, has erupted and James Dyson the inventor and founder is now worth an estimated £3bn.
Accounting for the growth of TNCs: their global outlook has increased rapidly over the past 30 years or so; this might be down to numerous reasons. Governments in NIC (newly industrialised countries) have desperately tried to appeal to every wealthy and powerful TNC,