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Transnational Corporations A corporation or enterprise that operates in more than 1 country (can be called a multi-national too) Top 10 non-banking TNCs 1 2 3 4 5 6 7 8 9 10 GE Vodafone Ford BP GM Shell Toyota Total/Elf FT Exxon - sketch the table USA UK UK USA UK USA Neth/UK Japan France France Aero, eng ? ? ? ? ? ? ? ? ? Features • • • • • Large, wealthy organisations HQ in 1 country, branches across world Improvements in transport and communications HQ in richer areas (Japan,USA) with research and development Production in poorer areas with lower labour costs, lenient laws or government wants investment Features 1. Large, _ _ _ _ _ _ _ organisations 2. HQ in 1 country, branches across _ _ _ _ _ 3. Improvements in transport and communications have made 4. 5. them rich. HQ in _ _ _ _ _ _ areas (Japan,USA) with research and development Production in _ _ _ _ _ _ countries with lower labour costs, lenient laws or where a government wants investment TNCs and GDP 2012 • • • • • • Revenue in $billions per TNC Wal-Mart-USA=244 Nestle=49 Coca Cola-USA=21 Gap-USA=15 Nike-USA=11 • • • • • Total wealth produced in $billions per country Bangladesh=259 Tunisia=68 Ghana =44 Jamaica=10 Advantages Disadvantages • Provide jobs/wages • Income benefits local • Leakage-profits taken out • • • • businesses-multiplier effect Training-skills New technology Money to invest Improved infrastructure and comms. • • • • • • • of host country Low wages Key jobs to outsiders Branch plants may close Poor work conditions Safety compromised Health jeopardised Air, water pollution
