Nature and Role of Transnational Corporations (TNCs (AQA A-Level Geography): Flashcards
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Practise the cards
10 cards from this deck
TNC definition
TNC definition
Company operating in at least 2 countries
Offshoring
Offshoring
Relocating company operations overseas
Outsourcing
Outsourcing
Subcontracting business operations to another company
Vertical integration
Vertical integration
Supply chain owned entirely by one company
Horizontal integration
Horizontal integration
Diversifying at same production stage via expansion/merger
Economic leakage
Economic leakage
Profits sent to TNC home country, not reinvested locally
Where TNCs locate R&D centres
Where TNCs locate R&D centres
Near universities in country of origin
Where TNCs locate manufacturing
Where TNCs locate manufacturing
Less developed economies (LDEs) with lower costs
Special Economic Zones (SEZs)
Special Economic Zones (SEZs)
Areas with reduced taxes & favourable business conditions
Multiplier effect
Multiplier effect
Initial investment creates additional income & employment