• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Examine the role TNCs play in the growth of globalization.

Extracts from this document...

Introduction

Examine the role TNC?s play in the growth of globalization. (15) Trans national corporations usually have their headquarters or financial headquarters in more economically developed countries such as UK, USA and Germany. The majority of products sold in these MEDC?s are produced in less economically developed countries or those with more industrially supported economy such as China or Thailand. One large TNC that?s products are known all other the world is Nike. Its headquarters are located in Oregon, USA. Nike?s factories are in every continent except Africa, due to their lack of infrastructure and industrial power. ...read more.

Middle

Nike operates on such a large scale around the world, with offices in 45 countries. Suggesting how this TNC has grown to a company with a market capital of 80 billion dollars, by global transportation and distribution of products, made in one country usually for a very low price and sold into MEDC?s with lost of profit, as population and transport routes grow so does the rate of production, with Nike making a larger profit every year due to increased demand and leading to further globalisation. As Trans-national corporations product demand grows, so does the amount of exported good meaning that the company has to open new factories and offices in new global stations, this ...read more.

Conclusion

Through globalisation which is fuelled by the increasing demand of developing countries, companies such as Tesco, Nike and Apple use globalisation to seize the market gap and create shops and offices in these developing countries to increase their market share and profit though a benefit for the country or area is that it increases trade to and employs both secondary, tertiary and quaternary workers. Further leading to sustained economic growth alongside further development for the business and other businesses that may move to the area due to the existing businesses? success. To conclude, transnational corporations play a large role in globalisation, by encouraging increased global consumer demand as well the urbanisation economically successful areas through offices and shops. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Global Interdependence & Economic Transition section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Global Interdependence & Economic Transition essays

  1. Assess the extent to which Trans National Corporations (TNCs) have a positive impact ...

    to spend, this then develops more and more local shops and businesses to be set up, which means overall, services improve. Money created by this can be used on education, health and infrastructure on the developing country. The money can also be put toward improving the infrastructure of the town

  2. Free essay

    Transnational corporations. There are two types of TNCs that affect health globally in very ...

    Pharmaceuticals can be sold under two broad categories, either branded or generic. Branded drugs are more expensive, between 3 and 30 times the price of the generic drug, and in MEDCs, the consumer has little or no choice in what they use as they go off the advice given by the doctor.

  1. What role can Finance play in developing the Nigerian Business Environment? A Case Study ...

    Civil War between 1967-1970 and the discovery of Crude Oil in commercial quantities heralded an era of Big Government during which government sought to control economic activity in virtually every sector. These developments were further encouraged by huge upsurges in Crude Oil prices and the consequent evolution of a massive import economy supported by the highly valued local currency.

  2. To What extent does Nike influence the shape of the environments in which it ...

    There are many methods to model the macro-environment factors, main four methods are: 1- STEP checklist: Structures set of separate but interconnected influences such as Social, Technology, Economic, and Political. 2- Transformation model: The environment is viewed as a set of inputs (products and resources)

  1. The Growth of Dubai

    Maktoum Bin Rashid Al Maktoum, Ruler Of Dubai Prime Minister Of UAE Sheik Hamdan Bin Rashid Al Maktoum Deputy Ruler Of Dubai And UAE Minister Of Finances And Industry Dubai city has grown from an 18th century fishing village and small trading port inhabited by the Bani Yas tribe.

  2. Comparing population, globalisation and social justice in Australia and Indonesia

    The transmigration program brought to the surface issues of indigenous control and assimilation and many saw transmigration as 'forced assimilation' and a violation of customary land rights (Adhiati, 2001). Many also saw the transmigration program as simply a redistribution of poverty and failing to alleviate it in any way.

  1. Using examples, illustrate the role of multinational companies (tnc), airline companies and globalisation on ...

    to the extent that the stability and sustainability of the international air transport system is at stake, having knock on effects to countries tourism industry. A very quiet American airport. Meanwhile, tour operators were incredibly disappointed that just when the season was picking up with students rushing from their Universities and homelands to the party places of the U.S.

  2. The Meaning of Globalisation and its Effects

    Control of the power abuse. In democracy the elected and public officials are prevented from missing their power. The most common form of power misuse is corruption. These occur when officials use public funds for their own benefits accept bribes in order to render services or exercise power illegally.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work