a case study on the transnational corporation Nokia

2. Reasons for where it is located:
Locating business to minimize costs:
TNCs such as Nokia have branches in many
countries because they want to reduce
costs. With lower costs, their profits are
higher. TNCs such as Nokia keep costs low
by
opening factories and offices in regions of
the world that have:
Low labour costs
Cheap land or building costs
Low business rates(the tax paid by
a company)

3. Locating business to be close to the customer:
Another reason why Nokia is
constantly expanding its range of factories and
offices is to be close to its customers, who are
spread right across the globe. Nokia's products
have massive appeal. Nokia estimated that
the mobile phone market had around 2.2
billion people in 2005 and this was expected to
rise 4 billion in 2009. Growth in mobile phone
ownership and subscription has been
particularly strong in Newly
Industrializing Countries (NICs). As consumers in
LEDCs have become wealthier, Nokia has
expanded its business into Asia, Africa and
South America. It has, therefore, opened new
sales offices in many NICs, located closer
to these new customers.

4.  Different jobs in different locations:
 Nokia employ a wide range of staff. Some
are highly qualified or skilled, such as business
managers or R&D staff. Other staff, such as
some assembly workers or sales stuff, do not
require high-level qualifications or as much
training. So, like many other MNCs, Nokia has
chosen to locate the assembly of basic
products in their range in NICs where wages
are lower. However, the more highly trained
R&D staff tend to work in Europe. Here, Nokia
develops new products, such as hand-held
devices capable of filming video, playing
games and surfing the web. These devices use
the latest technology and therefore need
more highly trained staff to develop and
produce them. These high-tech products are
also aimed at wealthier consumers, so it makes
sense to make them in Europe.

5. Local impacts
-Pollution caused by the factories -
lower standard of
regulation
-Jobs for local people
-Local people can learn new skills
-Development of local infrastructure

6. National impacts
-Development of mineral wealth
-New energy projects such as dams built
-Large-scale pollution in lakes and rivers

7.  Regional impacts
-By manufacturing in Europe Nokia can
avoid having to pay tariffs in the EU
-Improve the quality of life of people
living in the region