Globalisation case study

• Transnational corporation


  A company that has branches in many countries to reduce costs and be close to customers
• Nokia


  • Produces mobile phones
  • Has branches in many countries to reduce costs by opening factories and offices in regions with low labour costs, cheap land and building costs, and low business rates
  • Expands business to be close to customers in Newly Industrialising Countries (NICs) and Less Economically Developed Countries (LEDCs) as people become wealthier
• Types of Nokia employees

  • Highly qualified or skilled (business managers, research and development staff)
  • Assembly workers (do not require high-level qualifications)
• Reason for locating assembly in NICs

  Wages are lower
• Development of Nokia corporation


  1. 1865: Mining engineer Fredrik Idestam set up first wood pulp mill

  2. 1898: Finnish Rubber Works set up

  3. 1912: Finnish Cable Works established

  4. 1962: Branched into electronics

  5. 1963: Developed radio telephones for army and emergency services

  6. 1982: Introduced first car phone and digital telephone

  7. 1987: Introduced first handheld mobile phone

  8. 1998: World leader in mobile phones

  9. 2005: Sold billionth phone

  10. 2014: Microsoft acquired Nokia's devices and services business
• Nokia factories and offices

  • Hungary & Komárom (1999)
  • Mexico-Reynosa (1996)
  • Brazil-Manaus (1996)
  • India-Chennai (2006)
  • China-Dongguan (1995)
  • China-Beijing (1995)
  • South Korea-Masan (1984)
  • Vietnam - Hanoi (2013)
• Nokia factory in Hungary & Komárom


  • 70% female workforce
  • Supports local hospital, fire department, schools, built bypass road
• Nokia factory in Mexico-Reynosa


  • 98% of workforce from local area
  • Supports local university, schools, orphanages, shelters
  • Situated near US border, delivers smartphones to North, Central and South America
• Nokia factory in Brazil-Manaus


  • Established Nokia Foundation, a technical high school with 450 students
• Nokia factory in India-Chennai


  • Received Golden Peacock Award for high standards of environment management
  • Active in community with projects like local library programme and village regeneration
• Nokia factory in China-Dongguan


  • Produces almost a third of Nokia's entire mobile phone output
• Nokia factory in China-Beijing


  • Linked with several suppliers to reduce transportation costs and save on energy
• Nokia factory in South Korea-Masan


  • New state-of-the-art facilities opened in 2012
  • Local community supplies almost 99% of workforce, 68% of whom are women
• Nokia factory in Vietnam - Hanoi


  • US$302 million factory covering 65,400 m² in Vietnam-Singapore Industrial Zone