G+-+TNCs

A TNC stands for Trans-National Corporation. It is a company that operates in more than one country. A footloose company is one which can chose where they want to locate. This is because of improved transport links and communications. media type="youtube" key="fBBhE7WjODE" height="344" width="425" The video describes what a footlosse company is and some of the advantages and disadvantges of them.


 * __Why do TNCs go global?__**

TNCs have their headquarters in MEDCs and often have their factories in LEDCs. Their headquarters are in MEDCs as often the work done here is highly skilled. So they need to be in a country where a large majority of the people educated come out with a high skill level. So why do companies have factories in LEDCs? There are a variety of reasons: There are a variety of advantages and disadvantages associated with TNCs
 * cheap labour - the wages paid in LEDCs are cheaper than in MEDCs
 * closer to raw materials
 * be nearer to large markets (places with big populations)
 * Less environmental and business regulation by LEDC governments
 * Advantages
 * They give people jobs
 * They improve roads and airports
 * They invest in big projects
 * They help to develop mineral wealth and improve energy production
 * The money the workers earns can go into the local economy
 * They can improve the workers education and work skills || Disadvantages
 * The workers are poorly paid
 * Most of the profits go abroad
 * <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">Few managers are local people
 * <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">The factories cause pollution
 * <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">Minerals are exported
 * <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">The TNC can pull out of the LEDC with very little warning
 * <span style="font-family: 'Times New Roman','serif'; font-size: 12pt;">The goods made in the factories are often of no use or too expensive for people in LEDCs ||

Call Centres are very important - make sure you can recall why companies like BT locate in countries like India

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