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Defining a TNC..?

Defining a TNC..?. A TNC. TNCs control and co-ordinate economic activities from other countries and develop trade between the same corporation in different countries. Introducing the TNC. TARGETS: Define TNC. Explain how a TNC achieves its aims.

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Defining a TNC..?

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  1. Defining a TNC..?

  2. A TNC... TNCs control and co-ordinate economic activities from other countries and develop trade between the same corporation in different countries.

  3. Introducing the TNC TARGETS: Define TNC. Explain how a TNC achieves its aims. Evaluate the factors that affect the location of different industries.

  4. The aims of a TNC are to make more profit... TASK: Sort the cards into the correct sections of the VEN diagram. Reducing Costs Increasing Sales

  5. TNCs and Globalisation Which do you consider to be the most effective and WHY..? TNCs serve a global market and they can globalise their operations in a number of ways. • By producing just for a country that the plant is situated in. • Producing in a number of countries. • Integrate production – each plant performs a separate function.

  6. ECONOMIES OF SCALE?

  7. Internal Economies of Scale Urbanisation Economies... Localisation Economies... Purchasing materials or goods in the local area to reduce costs e.g. Transport and using just in time tactics. Lower costs with being in urbanised areas allowing the manufacturing to link with the service industries – many outsource to smaller companies saving start up costs.

  8. The Service Industry INSERT FDI GRAPH SET QUESTION – DESCRIBE AND EXPLAIN.

  9. Explain the development of the TNC and the tactics they employee to increase profit. 7 Marks

  10. Introducing the TNC TARGETS: Define TNC. Explain how a TNC achieves its aims. Evaluate the factors that affect the location of different industries.

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