Examine the role TNCs play in the growth of globalization.

The spread of the TNC Nike, shows how it has grown to reach all areas of the globe, it has around 700 stores around the world and in 2015 sold 120,000,000 pair of shoes, most of which would have been mostly made in Asia and exported to countries all around the world. 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 contributes to globalisation and an example is Tesco, through its global expansion it has stores in 11 countries, such as Thailand, Poland, Turkey and the UK. Showing how one company has spread into multiple countries, encouraging economic growth and employment around the globe, this encourages skilled people to work in TNC offices around the world, such as employing skilled workers in Poland into the tertiary sector created by the global expansion of Tesco.

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.