DNL: >> Globalization and the TNCs
Analyse sectorielle : DNL: >> Globalization and the TNCs. Recherche parmi 300 000+ dissertationsPar caolanawak • 3 Mars 2019 • Analyse sectorielle • 364 Mots (2 Pages) • 657 Vues
DNL: >> Globalization and the TNCs
- TNCs: Any corporation that is registered and operates in more than one country at a time; also called a multinational corporation. Examples: Coca-Cola, Nike, Starbucks, …
- Globalization : Globalization is an elimination of barriers to trade, communication, and cultural exchange.
TNCs have spread globalization through capitalism and cheap international marketing.
1/3 of all world trades is between TNCs // 1/3 are within TNCs
TNCs often utilise the vast resources of people for cheap labour in emerging countries such as China or South Africa. By investing in a developing country, a TNC is able to benefit from cheap labour as developing countries usually do not have any form of minimum wage. TNCs reduce the costs and increase production efficiency. If costs are low, profit should remain high which can then be used to reinvest into product innovation and new technology.
Statistics : 62 Millions customers are served each day in McDonalds
TNCs such as Apple spread the concept of « Uninformative Product » which is when a company releases only one product one after the other ; example with the Ipod, Ipod Classic, Ipod Nano, Iphone, Ipad, …
During the past 50 years, delivering goods has never been as easy thanks to the development of container carrier
Factors attracting TNCs to a country may include:
- cheap raw materials
- cheap labour supply
- good transport
- access to market, where the goods are sold
- friendly government policies
Pros/Cons:
Pros | Cons |
- TNCs help emerging countries by providing jobs (and the money earned from jobs can be used to provide education, health …) - TNCs due to their way of producing make people aware of global warming (with the deforestation in Amazonia for instance)
| - Globalization is mostly operating in the interests of the rich countries which conitnue to be richer and richer. - Money made in Southern countries doesn’t benefit each time to the Southern countries themselves. - Due to a lack of internationals laws, TNCs can operate by illegal maners (Child labour) - Globalization and TNCs increase the gap between rich & poors |
Conclusion: We can ask ourselves, does TNCs will still use child labour to develop their business? Can anything be done to prevent child labour?
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