TNC's

• what makes a country attractive to investors?


  -wage rages

  -labour skills in population

  -size of economy + population

  -political stability

  -raw materials

  -physical location, features
• offshoring


  the practice by basing some of a company's processes or services overseas, take advantages of lower costs
• foreign mergers


  two firms in different countries join forces to create a single entity
• foreign acquisitions


  a TNC takes over a company in another country
• transfer pricing


  the setting of a price for the transfer of products or services between controlled (or related) sections of a TNC
• outsourcing


  hiring workers in other countries to do a set of jobs
• glocalisation


  when a company restyles its products to fit the local areas taste
• corporate colonialism


  The idea of corporations taking rule of a country- they are seen as catalysts for progress and economic development
• TNC


  transnational corporations
• positives of TNCs


  -raising living standards

  -technology transfer (internet, infrastructure)

  -policial stability (if negative political circumstances TNCs leave the country)

  -higher environmental standards

  -have to be environmentally friendly otherwise don't do well
• negatives of TNCs


  -tax avoidance (google)

  -growing inequalities (workers)

  -environmental degradation (shell, Nigeria)

  -unemployment in local countries
• Global Hub


  switched on places possessing qualities that make other places want to connect with them- London, Tokyo
• What makes an area a Global Hub?

  Natural Resources

  ->coastline ideal for trade

  ->oil resources

  ->physical factors (relief,minerals)

  Human Resources

  ->large labour force

  ->skilled labour

  ->affluence attracts service providers

  ->language spoken

  
  

  Flows of....

  International/internal migrants

  Capital and TNC investment