Globalisation and Transnational Corporation Systems

" A company that has operations in more than one country. Many TNC are large companies and have well known brands." ...think you're favourite fast food or designer clothing label. As the world is becoming globalised, TNC are growing in size and number.

• Increase employment and thereby increase economic acitivity
• socio-economic, multiplier effect. This includes increased purchasing power (particularly in LEDCs) that in turn leads to demand for consumer goods and further economic growth.
• Encourage a transfer of technology into the country, for example, the growth of telecommunications.
• improving levels of skills and expertise.

• Many jobs are of low skills in LICs
• Majority of profits are sent back to the home country
• managerial positions tend to be brought in from overseas rather than developed locally
• Mulitplier effects can also be a negative, for example on the environment; political muscle of TNCs can be too aggressive and corners are sometimes cut in terms of health and safety and employee rights.

• Overseas investment adds to incomes for the whole nation (via tax and economic multiplayer effect)
• Wider share ownership - individuals and companies more willing to become involved in foreign investments.

• Workforce may need to relocate to make increased visits to operations overseas
• due to loopholes, corporation (business) tax is not paid fully by all TNCs
• Speculative investments in TNCs for quick returns helped contribute to the global 2008 financial crisis.

"Describes the process in which TNCs adapt what they offer their customers depending on where in the world they work, or at least market it differently"

Every day, 1.9 billion products made by the Coca-cola brand are consumed globally. As a global product, it is arguable one of the world most recognisable brands. In 2015 it was rated by interbreed as one of the most valuable brands (behind Google and Apple). Stakeholders have received 53 years of consecutive dividend increases.

Coca-Cola now has 20 main brands that generate over US$45 billion a year in revenue and sales in nearly 200 countries. See map of world which takes you through Coca Cola as a TNC, the spatial organisation, headquarters, research and development, production and evaluation of the social and economic of this TNC.