Transnational Corporations-

Define Transnational Corporation.

• Companies listed in the S&P 500 largest companies on the US Stock Exchange.

• Companies with sales in 2 or more continents.

• Companies that have operations in 2 or more countries.

• Companies that make an annual profit over a 5 year period.

Where do research and development arms of a TNC prefer to locate?

• Close to excellent transport links e.g. motorways and airports

• Close to high ranking university campuses

• Close to large markets

• Close to raw materials

Where are company headquarters usually located?

• Where government tax is the lowest.

• Close to major universities.

• In the country that the company was founded.

• In the USA.

Some TNCs are accused of running 'sweatshop factories'. What is a sweatshop factory?

• Workers are exposed to toxic pollutants.

• Workers get access to perks and benefits such as bonuses and free clothing.

• Manual workers are employed at very low wages for long hours and under poor conditions.

• Where a company avoids paying tax to the governments.

Many TNC operations can be considered to be 'footloose'. What does this mean?

• Are high value companies that pay above average tax.

• Not fixed to one location and can leave at any time.

• Are flexible in their operation and production methods.

• Have negative impacts on the local environment.

The first TNCs were linked to...

• Equality and fairness

• Liberalism and political change

• The financial sector

• Empire and colonialisation

Which factor is a NEGATIVE impact of TNCs on Low Income Countries.

• Top managerial roles go to employees from overseas.

• Foreign exchange for the country.

• Employment for local people.

• People have access to new products locally.