Econ Dev in India GCSE CGP P89 TNC's & Changing Relationships

What are Transnational Corporations?

• a company that has many branches in one nation

• a company that has its headquarters in one country but operates in another

• a company that operates in more than one country

In what type of countries are TNC factories located?

• Higher income countries

• Lower income countries

What are the advantages for a TNC in having their factories located in LIC's?

There are two correct answers

• Very few environmental and labour restrictions

• Labour is cheaper so profit is greater

• Tight planning laws

In what type of countries are TNC's offices and headquarters usually located?

• Higher income countries

• Lower income countries

Why do TNC's have their headquarters located in HIC's?

• Highly developed expertise and administrative skills in HIC's

• HIC's are well connected in terms of global transport

• Higher standard of education and a larger, better qualified work force

• HIC's are well connected in terms of global communications

• All of the these

Unilever is one of many TNC's operating in India

• True

• False

What is the name of the branch of Unilever operating in India?

• Hindustan Unilever Limited

• Mumbai Unilever Limited

• Unilever India limited

Unilever is not one of the worlds biggest food and consumer goods manufacturers in the world.

• True

• False

TNC's provide employment for the Indian workforce. How many people are employed by Unilever in India?

• 7,000

• 16,000

• 28,000

• 43,000

How does the Indian government directly benefit economically from having a TNC located in their country?

• TNC's provide an income for a proportion of the workforce.

• TNC's provide employment for the workforce

• TNC's pay tax of 40% of their income to the government