What is a TNC?
Due to globalisation many businesses have set up or bought operations in other countries. When a foreign company invests in a country, maybe by building a factory or a shop, this is called inward investment. Companies that operate in several countries are called transnational corporations. In other words a TNC is a company with many branches in many different countries.
I bet all you fashion fanatics have seen or worn Nike clothing. But did you now that Nike is a very large TNC. If you think about it a lot of people all around the world know about Nike. This is because Nike is a big TNC with 47,000 shops selling its goods in around 140 countries around the world. TNC’s like Nike can influence the food you eat and the clothes you wear. Clothes or equipment that have Nike logos, or any other company’s logo are known as branded goods. By looking at the brand goods or the brand name shoppers will instantly recognize the brand. TNC’s just become bigger and larger as the years pass by. In fact, some TNC’s are even more powerful than some governments, but I will talk about that more later.
The growth of TNC’s like Nike is an example of gloablisation.
These are some of the most famous TNCs, which are instantly recognized.
Most TNCs come from more economically developed countries such as the UK and the US. TNCs invest in countries all around the world. They invest in countries, which have; cheap raw materials, cheap labour supply, good transport, access to market where goods are sold and friendly government polices. Though TNC’s don’t actually make products in the country where they are based in. Instead they look for factories in other countries around the world where they can get the things made cheaply in. They try to find factories in LEDCs were the wages are low.
Nike is an example of a TNC that looks for factories were the wages are low, as it has goods made in about 30 different countries, which are mostly LEDCs. TNC’s like Nike don’t actually pay the factory that makes the product much money, but factory owners have to accept it, trying to make a profit in the meantime. The factory owner normally forces his workers to work very quickly making the products with little pay, but the factory workers have to listen to the factory owner. They have to listen to the factory owner, as they have no choice due to the fact that they will be fired from their job, which means that they will not get any money at all. They have to work in poor conditions as they have very little sleep, they can work up to 19 hours a day and they rarely have breaks. This is known as sweatshops. Though they have to keep their current job no matter how bad their conditions are, as there are not many well-paid jobs in LEDCs. As well as that if factories have no orders they don’t get any money at all and they can get sacked without warning. This is a big point between the two sides of the globalisation and TNC’s argument, but I will talk about this later.
Nike is based
in the US but
there is a
factory in
China
As you can see some TNC’s find factories on the other side of the world. Nike is a US based company with a factory all the way in China. Then this Nike gear is sold in other parts of the world like the UK. So if you think about it the next branded good you buy could have been linked to many various countries in a totally different continent to the one you live on.
Arguments For and Against Globalisation
There are many people in favour of globalisation with others totally disagreeing. There are many arguments for and against globalisation, including economic, social and environmental issues in both MEDCs and LEDCs. Firstly, I will talk about Social arguments for globalization.
Social Arguments For Globalisation
Some people believe that due to globalisation there is far more mixing of people and cultures from all over the world, allowing more sharing of ideas, experiences, and lifestyles. People can try out clothes and other products not previously available in their countries. Some people also think that globalisation can help make people become aware of events in far away parts of the world. For example, people in the UK were quickly aware of the impact of the 2004 Tsunami on countries in SE Asia, and were therefore able to send help rapidly.
Now let’s look at the social arguments against globalisation.
Social Arguments Against Globalisation
Some people believe that globalisation is threatening the world's cultural diversity by drowning out local economies, traditions and languages and re-casting the whole world in the mould of the capitalist North and West. For example a Hollywood film is far more likely to be successful worldwide than one made in India or China, which also have successful film industries. As well as that many people feel that their culture is being eroded thanks to baseball caps, jeans fast foods and TV. In addition, some workers in many factories for TNCs have to endure abusive human rights.
Due to globaliastion
this is an everyday
site of children
eating McDonalds
and wearing jeans
After looking at the social arguments for and against globalsiation let’s look at the environmental arguments. There are no arguments supporting globalisation so lets look at the arguments against globalisation.
Environmental Arguments For Globalisation
According to a lot of people, especially environmentalists, many LEDCs don’t have strong laws to protect the environment so TNC’s can go there and ruin the place. Some people think that TNCs also pollute the air and water with toxic chemicals, which will not be allowed back in their own home. As well as that some people believe that TNCs may damage the well-being of humans and other species. They do this by polluting drinking water supplies or poisoning plants or animals.
Some people believe that factories where TNC goods are made in may interfere with natural processes by changing local climatic conditions or destroying wildlife habitats. In addition, some believe that factories impact on people's livelihoods. For example, pollution of the sea will hurt people who are involved in fishing and tourism.
Industrial
atmospheric pollution
in Uzbekistan due to
TNCs
After talking about various different things, I will give you fashion fanatics by own personal opinion to help you make up your mind over buying and wearing branded goods.
My Opinion
There are many good points from both sides of the arguments over globalistion, TNCs and branded goods. Though I personally support the fact that globalisation should continue to take place and that you guys should continue to buy branded goods. I think that there is nothing wrong with you guys enjoying yourself and buying whatever clothes you want, as the way branded goods are made is not your fault. However, I also believe that some changes should be made to make the world a better place. Firstly, I know that TNC’s all want to make profit and nothing much can be done to help that, though I believe that workers for TNCs should all be treated with the same amount of respects. Even if they are in LEDCs or MEDCs all workers should be treated with respect. As well as that the wages should be higher so that workers in poorer countries could at least afford a lot more things that they do now. The wages can’t be increased too much as the TNC’s just want to make profits, but they should be increased so they can help workers have a better life. So overall, I believe that you youngsters should buy as much branded goods, as you like, as you have the right to. Though remember respect your friends, your family and your fashion.
