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A level Geography - Development and Globalisation > Transnational corporations > Flashcards

Flashcards in Transnational corporations Deck (7)
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1
Q

What are the characteristics of TNCs?

A

Capitalist enterprises in more than one country.
Hierarchical organisation.
Headquarters, R and D in the home country.
Centres of production overseas.

2
Q

What happens to the structure of TNCs as they become more global?

A

Organisation more global.

Regional headquarters and some R and D will develop in the manufacturing areas.

3
Q

What are the top 3 TNCs in the world?

A
  1. Wal-Mart - USA - retailing - $378.8 billion.
  2. ExxonMobil - USA - oil/gas - $358.6 billion.
  3. Royal Dutch Shell - UK - oil/gas - $355.8 billion.
4
Q

What is the primary process of a TNC?

A

Resource extraction.
Oil and gas.
E.g. Royal Dutch Shell.

5
Q

What is the secondary process of a TNC?

A

Manufacturing.

  1. High-tech industries - computers.
  2. Large-volume consumer goods - cars e.g. Ford.
  3. Mass-produced consumer goods - cigarettes.
6
Q

What is the tertiary process of a TNC?

A

Service operations.
Banking/insurance.
Advertising.
E.g. AXA.

7
Q

Honda TNC mini case study.

A

Swindon, UK.
2008 - employed 4,000.
200,000 vehicles annually - European market.
Some exports to middle East, Africa, North America.
Recession 2008/2009 - laid off workers.
Plant closed for some periods.
Has geographical flexibility - can shift resources/production between global locations.