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Transnational Corporations

Published on Nov 19, 2015

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PRESENTATION OUTLINE

1.

TRANSNATIONAL

CORPORATIONS
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2.

Dispersed Production Networks

TNCs operate in more than one country
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3.

TNCs "are firms that have the power to coordinate and control operations in more than one country, even if it does not own them"

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4.

Takes advantage of geographical differences

in natural resources, labour, state policies, markets...
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5.

Potential market of consumers

  • Large size of markets
  • Affluence of market
  • Accessibility of markets
  • Cater to local preferences
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6.

Labour characteristics

  • Knowledge & skills
  • Wage costs
  • Labour productivity
  • Labour 'controllability'
  • Labour mobility
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7.

Industrial clusters

8.

Potential Geographical Flexibility

Ability to switch and re-switch resources
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9.

Soaring Chinese wages

What does this mean for global manufacturing?
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10.

The end of cheap China?

11.

Largest global companies are TNCs

Large employment numbers in all sectors of the economy
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12.

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13.

Firms with a profit-making strategy

The revenue of some TNCs are greater than the GDP of many countries
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14.

Not all profits are created equal?

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15.

Some TNCs are diverse

Unilever has over 400 brands
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16.

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17.

Reflection

Why do companies transnationalize? What are the benefits/risks?
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Aisha