Globalisation+

Question 1

offshoring

Answer 1

Some TNC’s build their own production facilities in other countries with cheaper labour costs

Question 2

foreign mergers

Answer 2

Two firms in different countries join forces to create a single entity. Royal Dutch Shell has headquarters in both UK and the Netherlands

Royal Dutch Petroleum Company and Shell Transport

Question 3

foreign acquisitions

Answer 3

When a TNC takes over a company in another country . In 2010 Cadbury was taken over by Kraft. The Uk has few restrictions on this USA has a committee on this

Question 4

what attracts a TNC to invest

Answer 4

Growing middle class

Physical location(port)

stability

cheap skilled labour

size of economy / population

raw materials

market