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L5 ap tn cs

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  • 1. Lesson Objectives • To know what a TNC is and learn a suitable case study
  • 2. Trans National Corporations (TNC’s) • Transnational Corporations (TNCs) are major companies which have a presence (e.g. production, headquarters, sales) in at least two countries. • Many TNCs are so economically powerful and politically influential that they rival national economies in terms of wealth. • They hold together different economies and societies through supply chains and marketing strategies
  • 3. TNC’s • TNC’s have evolved into complex organisms; – Large TNC’s regularly buy other smaller ones (e.g. Jaguar and Land Rover owned by Tata, the Indian steel company) – Much of manufacturing is subcontracted to third parties so enforcing good working conditions is hard.
  • 4. TNC’s • They also operate in Glocalisation (changing their produce to meet local markets, e.g. Wet Market in Tesco in Thailand or the Chicken Maharajah Mac) • Most TNC’s are simply assembly industries (e.g. Mini who in Oxford assemble 2,500 different parts)
  • 5. So where do TNC’s belong? • It is difficult to map the geography of TNC’s due to their complex network of production and consumption • The largest firms have branch plants (a factory not in the country where the TNC’s headquarters is.)
  • 6. So where do TNC’s belong? • Despite all this the parent company (i.e. the one which owns everything else e.g. Tata in the case of Jaguar and Land Rover in India) do need to register a head office somewhere where they pay tax. • TNC’s also promote consumption patterns, e.g. Burger King opening first store in China in 2005. Now plans to open 1000 more stores.
  • 7. TNC Case Study: Tesco • History of Tesco video • Watch this video here to give you an idea of how global Tesco is and what they do to help other parts of the world (floods 2011). • Global growth of Tesco video.
  • 8. Tesco Case Study: Your Turn • Produce a poster for display on Tesco using p105-6. Include; 1. Brief History 2. Where stores are and are not located abroad and why. 3. What are the positive effects on foreign countries. 4. What are the negative effects that Tesco has on the world.