TNCs

• what are most TNC's in capitalist countries?


  public limited companies (PLC's) aka owned by the general public (private shareholders)
• what do shareholders get each year?


  a proportion of profits from the PLC's as dividends
• what are most TNC's in communist countries?


  state owned, profits of these go to governments
• what are all countries in reality (other than cap v com)


  mixed economies, some aspects of free market along with gov control
• where might state control be found in emerging and developed countries?

  in economically strategic industries eg resource extraction or public infrastructure

  • where health and safety is key
  • or where the state control is in nation interest eg defence or broadcasting
• what do TNC's dominate?


  global economy, the largest 200 TNC's in 2015 produced 25% of the global output
• why have TNC's grown in importance in the global economy?


  economies of scale

  • they can produce goods cheaper than national firms at a higher quantity which drives them out of business

  large profits

  • which can be re-invested into research and development which makes TNC's leading produces of new technologies, therefore their products may also be better than national firms
• how has the influence of TNC's grown?


  the enabling of globalisation due to economic liberalisation, new transport tech and reduced barriers
• how much of global trade do TNC's account for?


  80%
• how can TNC's affect the pattern of global trade?


  because lots of global trade is intra-company, when they make production decisions the global trade pattern can change

  • eg the global shift