Transnational corporations

Globalisation has resulted in many businesses setting up or buying operations in other countries. When a foreign company invests in a country, perhaps by building a factory or a shop, this is called inward investment. Companies that operate in several countries are called multinational corporations (MNCs) or transnational corporations (TNCs). The US fast-food chain McDonald's is a large MNC - it has nearly 30,000 restaurants in 119 countries.

Rio Tinto, A Multinational Company

Questions at end of booklet:
1.a. A multinational company is a company which deals throughout the world.
B. TNC trans national corporation
c. Due to the ease of transport and modern technologies such as email.
2.It is a British and Australian company involved in locating, extracting and processing some of the Earths most valuable minerals, therefore it is in the primary sector.
3.a. The advantages can be bigger profits and more Jobs, disadvantages include tax evasion and making other smaller companies go out of business.
b. We could get a TNC to do it for us, and give people jobs and to pay tax.
4. N/A
5.  From USA and Mongolia.
6. N/A
7. The titanium oxide companies.
8. As a company Rio Tinto is aware of the need to ensure that its worldwide operations deliver 'best practice'. The aim is to ensure that any damaging social, economic and environmental effects as a result of exploitation of a mineral reserve anywhere in the world are kept to a minimum.
9. The company was formed in 1873 when a group of investors bought a mine complex at Rio Tinto in Huelva in the spanish province of Andalucia, to exploit its copper reserves, it now is a worldwide, highly renowned company making millions in profit a year.
10.

Transnational Corporations

Transnational corporations (TNCs) are very big companies which deal world wide (global). They have an administrative HQ, a research and development establishment and productions centres in one country and at least one, but often many more, branches and/or production centres overseas. Over the past 20 years major technological advances in transport (containerisation, bulk carriers and air freight), along with developments in computerisation and communications (satellites and internet), have brought about the globalisation of the world's economy and resultant growth in size and number such as TNCs.
Approximately 90% of TNCs are based in MEDCs, especially the USA, France, Germany, the UK and Japan.
Overseas branches are in LEDCs because:

• Production costs are usually less than in MEDCs, with lower wages, cheaper land and lower transport costs.
• Governments of LEDCs want to host TNCs as they often encourage further economic development (multiplier effect), and so they offer financial incentives such as low rates and taxes.

Recently, firms in newly industrialised countries (NICs), especially in the 'tiger economies'  of Eastern Asia, which produce machinery, electronics and cars, have become TNCs. As wage costs have risen in their home countries they have extended 

Globalisation and Migration

I think globalisation is the world wide trade and use of products and how the world works in unison, for example you can eat a meal which is from Germany whilst playing on your Chinese made iPad.

The appearance of large TNCs with diverse business interests literally spread across the globe.

The growth of regional economic or trading blocs, such as the European Union (EU) and the North American Free Trade Agreement (NAFTA). By encouraging free trade between member countries, the barrie effects of national boundaries are broken down. In short, there is much more global trade.

The development of modern transport networks (air, land and sea) capable of moving people, commodities quickly and relatively cheaply. Due mainly to the aircraft, physical distanced worldwide are much less important. We live in a 'shrinking world'

Advances in information technology and communication technology mean that important data and decisions can be whizzed around the globe in a matter of seconds. A TNC with its headquarters in London or another major city can closely monitor market trends around the world. It can easily check up on what is happening in its branch offices and factories scattered around the globe. Decisions can be quickly transmitted.

Due to these points the world has come to be known as the global village, we see this in the