Weald- A-Level Geography Revision- 3.3b- TNCs

What is the role of TNCs in globalisation?

• Contributing to the spread of globalisation

• Creating trade blocs

• Removing international barriers

• Encouraging economic liberalisation

What is the main reason why firms become TNCs?

• To reduce costs

• To generate higher revenues

• To access new markets

• To increase profit

What is offshoring?

• Moving part of a company's production process to another country

• Contracting with another company to obtain goods or services

• Outsourcing administration and data processing

• Adapting brands and products to suit the local market conditions

What is outsourcing?

• Contracting with another company to obtain goods or services

• Moving part of a company's production process to another country

• Outsourcing administration and data processing

• Adapting brands and products to suit the local market conditions

What is glocalisation?

• The process of adapting brands and products to suit the local market conditions

• The process of moving part of a company's production process to another country

• The process of contracting with another company to obtain goods or services

• The process of spreading globalisation

What are the drawbacks of TNCs? (select all that apply)

• Vulnerability to production halts in different parts of the world

• Exploitation of workers in the developing/emerging world

• Job losses in the home country

• Erosion of local cultures and traditions

What halted production at an offshore Nissan factory in Sunderland?

• 2011 Japanese tsunami

• Rana Plaza textile factory collapse

• Exploitation of workers

• Erosion of local cultures

Which company outsources component production for the Mini to 2,500 different suppliers?

• BMW

• Wal-Mart

• Benetton

• Royal Dutch Shell

What is the main reason for China's rapid economic growth?

• Western TNCs locating manufacturing plants in SEZs

• Creation of trade blocs

• Removal of international barriers

• Government policies encouraging economic liberalisation

What is the equivalent of Wal-Mart Stores' 2016 turnover?

• Poland's GDP

• China's GDP

• India's GDP

• Brazil's GDP