TNCs

• define TNCS 


  TNCs are companies located in 2 or more countries which produce and sell goods or services- 80% of global trade linked to TNCs
• how globalisation grows due to TNCs

  • develop control and supply chains across countries,adding flow of commodities,capital ect
  • likely to focus FDI on some countries and not others creating uneven spread of globalisation, TNC more likely to invest in country with potential economic advantage eg cheaper labour force or tariff-free trade blocs
• what is glocalisation 


  when a TNC adapts to local markets eg changing product design to fit local laws or tastes, making products more appealing to new market
• examples of glocalisation

  • clothing sized differently for different countries eg shorter legs
  • fast food menus eg mcdonalds change to fit local tastes or religious observances
• what is economic liberalisation 


  having freer trade and welcoming foreign investment, TNCs take advantage of economic liberalisation
• offshoring 


  when a tnc moves branches of the company eg factories to other locations over seas which provide cheaper labour and lower running costs
• outsourcing 


  TNCs can invest in other countries by outsourcing parts of their operations to local companies overseas eg apple employs the component manufacturer foxconn in Shenzhen,china to complete manufacturing of many products