globalisation 3.3b

Question 1

whats the importance of TNCs for globalisation?

Answer 1

Important in globalisation by contributing a new global network, inc cultrural awareness new markets inc profit, glocalisation and taking advantage of economic liberisalisation = outsourcing

Question 2

what are TNCs and what do they do?

Answer 2

• some of the largest companies in the world
• take advantage of global inequality & globalisation [support international operations] to outsource
• = max profit through selling at high cost in HICs & manuafacture at low costs and low wage LIC/NEEs

Question 3

what are the advantages of TNCs?

Answer 3

• job oppurtinities in secondary sector [manufacturing]
• help stablise and support [to grow] econmies
• improved infastructure
• new global network increases global flows [COMICAT]
• cultural awarness inc
• for LICs FDI = provides growth and development = economic benefits

Question 4

what are the disadvanges of TNCs?

Answer 4

• negative EN impacts e.g eutrophication, Nigeria oil spills = effluent, CO2, SO2 emmisions
• money/profit leaves country to country of headquaters
• exploit workers, unfair hours and wages & poor working conditions [but jobs so valuable for workers = less important]
• power inbalance have overarching power and money over government = can leave and cause econmy to fall

Question 5

what does MOAT stand for?

Answer 5

Merges
Offshoring
Accusitions
Transfer pricing

Question 6

what has M.O.A.T lead to?
give and e.g

Answer 6

• huge growth in TNCs
• e.g Nestle owns ralph lauren

Question 7

what does market capitilisation mean?

Answer 7

what the stock market predicts a company is worth

Question 8

what company has the biggest market capitlisation why?

Answer 8

• apple = $2.8T
• tertiarry sector = tech inc connectvity and globalisation

Question 9

explain the American TNC Satrbucks and the negative cultural impact?
how many countires have a starbucks?

Answer 9

• many TNCs headqauters in America [all profit returns here] - westernisation? americanisation?
• acculturation/ cultural dilution occurs = overiding local culture
• 86 countries

Question 10

why is there no longer any starbucks in Russia?

Answer 10

• starbucks an American TNC didnt want to have any representation there as it disgareed with the war = justifying the ideology of Americanisation

Question 11

how do companies reach global markets effectively?
= global marketing/brand harmonisation

Answer 11

• need to ensure there products can be recognised & sold in same format
• but need to be **culturally sensitive ** and adapt to the country e.g politcilly, linguistically, culturaally ect
  = if not taken into account lost market and less profit

Question 12

give an example of a global marketing fail?

Answer 12

schwepps expanded into the Italian market and tonic water transalated to toilet water..

Question 13

what is glocalisation?

Answer 13

companies over coming cultrual differnce and offering alternative products in countries internationally

Question 14

explain how McDonalds has sucessfully glocalised?
= maximising market opps by thinking abt these factors such as culture

Answer 14

• have hundreds of branches in India [beed free relgion]
• to overcome this while keeping strong brand image they offered differnet food options = gaining global reputation for quality, speed etc