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Globalisation Mapping-Trans National Companies.

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´╗┐Globalisation Mapping Task By looking at the map, it is apparent that the majority of the top 30 TNC?s are distributed throughout developed countries. Amongst these developed countries, the United States and the European region consisted of most of the TNC headquarters (37% and 43% respectively). Obviously most of the TNC headquarters are based in Western economies probably due to improved communication and simpler travel means. Therefore, only 20% of the TNC headquarters are in other parts of the world like South America, Asia and the Middle East. Other factors that may play a role in the distribution of the TNC headquarters include the availability of natural resources, diversity and a stable economy. The Middle Eastern nations are home to some of the largest oil reserves in the world. Hence, these resources has made them wealthy compared to other developing countries since the whole world needs oil to function. ...read more.


The developing regions such as Africa, Asia and South America have a very minimal amount of TNC headquarters based there. This is because these areas consist of the majority of the poorest nations in world that may be lacking in natural resources and include a weak economy. Exceptions include Russia, China, South Korea and Brazil, which are stable countries with a strong economy. This is because the TNC headquarters for the automotive, technology and communications industries are based in those countries which account for approximately 33% of the world?s top 30 TNC?s. By looking at the map, it is apparent that TNC headquarters tend to be based in prospering and economically stable countries. The countries with a high GDP are also the headquarters of a high earning TNC. The Western countries account for most of TNC?s with a high GDP ranking including the United States and Europe. ...read more.


This may account for the low GDP ranking of such poorer countries. TNC?s have more wealth and therefore more power than developing countries. Hence, they have a huge political influence on such countries and therefore can get what they want. TNC?s can move their branch-plants to areas of the world where labour is less regulated. For workers this means that unions are banned, health and safety is poor and wages low. This creates economic instability within the host country thus resulting in a lower GDP. In this way, such TNC?S are doing little to help instable economies to develop. TNC?s seem to be the centre of the economic growth in today?s world. Despite their unethical mannerisms, they are responsible for transfer of new technology from developed to developing nations and bridging the gap between them. TNC?s are also starting to bring stability to countries in Asia such as China, Japan and even India whilst offering consumers a large variety of choice, in turn improving standards of living. ...read more.

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