4.4

• What is meant by “corporate capitalism”?

  A system where TNCs (transnational corporations) dominate economic activity. For example, by 2016 the top 200 TNCs employed only 1% of the global workforce but contributed to 25% of the world’s economic activity.
• Why are TNCs essential to globalisation?

  They enable the free movement of capital, goods, services, and labour across borders, linking economies through global production networks.
• What motivates TNCs to expand globally?

  Profit is the key motive. They increase revenue by expanding markets, taking over rivals, achieving economies of scale, and regularly launching new or improved products.
• What is horizontal vs. vertical integration in TNCs?

  Horizontal integration: Expanding at one level of the production process (e.g., Disney buying Pixar). Vertical integration: Controlling every stage of production (e.g., from raw materials to sales).
• What enables TNCs to grow (the means)?

  Free-flowing global capital via banks and finance systems. Investment trends (e.g., slowdown during 2008 crisis, recovery by 2014). Reverse colonisation (e.g., Indian firms investing in the UK)
• What is meant by “reverse colonisation”?

  When formerly colonised or developing countries (e.g., India, China) become significant overseas investors in wealthier countries. Example: in 2015, 800 Indian firms operated in the UK, employing 110,000 people.
• How does mobility support TNC operations?

  Faster, cheaper transport. Instant global communication. Just-in-time manufacturing. Flexibility in sourcing and production—sometimes leading to controversial choices
• How has Disney become a global TNC?

  Started as a US animation studio, now a global media giant. 2014: $48.8bn turnover, 180,000 employees, 40,000 suppliers in 70 countries. Owns shops, record labels, production companies, and broadcast networks
• How does Disney manage global production and costs?

  Uses overseas manufacturers (offshoring). Requires fast delivery, avoids running its own factories. Criticised for low wages/toxic materials, now monitors suppliers more closely
• What is “glocalisation” and how has Disney used it?

  Glocalisation = tailoring products to local markets. Examples: The Hunchback of Notre Dame to rebrand Disneyland Paris; Mulan to appeal to the Chinese market