Understanding Transnational Corporations

Choose a study mode

Play Quiz

Study Flashcards

Spaced Repetition

Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Download our mobile app to listen on the go

Get App

Questions and Answers

What distinguishes a TNC from a regular corporation?

A TNC operates in multiple countries, while a regular corporation typically operates within a single nation.

Why do TNCs prefer to operate in low-income countries?

TNCs seek low production costs due to cheaper materials and wages, as well as access to large consumer markets.

Name two prominent TNCs and their industries.

Apple (technology) and Chevron (oil and gas) are two examples of prominent TNCs.

Which benefits of TNCs would be crucial for a government minister and a parent?

<p>Tax contributions and job creation are crucial benefits for both a government minister and a parent.</p> Signup and view all the answers

As a doctor and a factory owner in a low-income country, how would your perspective on TNCs differ?

<p>As a doctor, I might view TNCs as beneficial for healthcare improvement, while as a factory owner, I could see them as competition.</p> Signup and view all the answers

Flashcards

What is a transnational corporation (TNC)?

A transnational corporation is a company that operates in multiple countries. They are often responsible for a significant portion of global trade, playing a key role in how we live, consume, and even the development of different nations.

Why do TNCs set up in new countries?

The main reason TNCs set up in new countries is to maximize profits, but they often seek out cheaper labor, lower taxes, and abundant resources like raw materials.

Pros and Cons of TNCs

TNCs can offer a boost to a country's development, but it's a complex issue. Their presence can also lead to exploitation of workers and resources. This can be seen in the case of some TNCs operating in low-income countries.