9.2.4
Transnational Corporations (TNCs)
TNC Locations
TNC Locations
TNCS often have HQ offices in HICs and their manufacturing in LICs.


Head Quarters
Head Quarters
- TNCs are usually set up in HICs because they are nice locations and are usually where their clients are located.


Reducing production costs
Reducing production costs
- TNCs want to make the most money possible per item they make. To do this they must reduce production costs.
- People in HICs have the benefit of laws that protect their human rights.
- e.g. minimum wages, limits on working hours, and legislation that guarantees workplace safety.
- However, in many LICs, the government needs business there so much that they fail to enforce high working standards (even if the laws exist).


Workers in LICs 1
Workers in LICs 1
- TNCs can pay employees less if they have their factories in LICs and do not have to worry too much about workers’ rights or building regulations.
- This greatly helps TNCs reduce their costs.
- Some locations are warm and humid and workers work long hours in unpleasant conditions without enough breaks.
- These factories are often called ‘sweatshops’.


Workers in LICs 2
Workers in LICs 2
- Although workers in LICs are paid less than they would be in an HIC, they can make a decent living because the cost of living is a lot cheaper in LICs.
- This means that there are a lot of people who are willing to work.
- Lots of people are unemployed, so any work is better than none.


Raw materials
Raw materials
- In HICs, raw materials are not easily accessible (e.g. oil, coal and gas are in limited supply in the UK).


Impact on HICs
Impact on HICs
- As more and more industries are moved to LICs, this can have a negative impact on some areas in HICs.
- For example, when Hull lost its shipbuilding industry, the city became financially unstable.
1Paper 1 - Changing River Environnments
1.1Characteristics of Rivers
1.2River Landforms
1.3Rivers: Opportunities & Hazards
1.4The Bradshaw Model
1.5The Drainage Basin & the Water Cycle
1.6Processes Operating in a Drainage Basin
2Paper 1 - Changing Coastal Environments
2.1Physical Processes that Shape the Coast
2.1.1Processes of Erosion
2.1.2Corrosion & Corrasion
2.1.3Transportation
2.1.4Deposition
2.1.5Longshore Drift
2.1.6Types of Waves
2.1.7Case Study: The Holderness Coast (UK)
2.1.8Case Study: The Holderness Coast - Management
2.1.9Case Study: The Holderness Coast - Defences
2.1.10Diagnostic Misconceptions - Swash & Backwash
2.2Landforms
2.3Opportunities & Hazards
2.4Tropical Storms
2.4.1Tropical Storms
2.4.2Structure of Tropical Storms
2.4.3Causes of Tropical Storms
2.4.4Effects of Tropical Storms
2.4.5Hazards of Tropical Storms
2.4.6Case Study: Hurricane Katrina - Effects
2.4.7Case Study: Hurricane Katrina - Responses
2.4.8Case Study: Cyclone Nargis - Responses
2.4.9Case Study: Cyclone Nargis
2.4.10Mathematical Skills: Weather Hazards
2.4.11Diagnostic Misconceptions - Rainfall
3Paper 1 - Changing Ecosystems
3.1Antarctic
3.2Threats to the Antarctic
3.3Tropical Rainforest
3.4Tropical Rainforest: Threats
4Paper 1 - Tectonic Hazards
4.1The Structure of the Earth
4.2The Processes of Earthquakes & Volcanoes
4.2.1Earthquakes: Processes & Characteristics
4.2.2Earthquake Hazards
4.2.3Types of Volcano
4.2.4Classification & Features
4.2.5Volcanic Hazards
4.2.6Diagnostic Misconceptions - Lava
4.2.7Diagnostic Misconceptions - Location of Volcanoes
4.2.8Diagnostic Misconceptions - Focus vs Epicentre
4.2.9Diagnostic Misconceptions - Sliding Plates
4.3The Impacts of Tectonic Hazards
5Paper 1 - Climate Change
5.1Natural & Human Causes of Climate Change
5.2Impacts of Climate Change
5.3Responses to Climate Change
6Paper 2 - Changing Populations
6.1Populations Grow & Decline
6.2Population Structures Over Time
7Paper 2 - Changing Towns & Cities
7.1Where People Live
7.2Opportunities & Challenges of Urbanisation
8Paper 2 - Development
8.1Measuring Development
8.2Uneven Development
8.3Sustainable Development
9Paper 2 - Changing Economies
9.1Changing Employment Structures
9.2Globalisation
9.3Tourism
9.3.1Factors Leading to the Growth of Tourism
9.3.2The Butler Model
9.3.3Benefits of Tourism - Economic
9.3.4Benefits of Tourism - Social, Cultural & Env.
9.3.5Problems with Tourism - Economic
9.3.6Problems of Tourism - Social, Cultural & Env.
9.3.7Managing Tourism - Sustainability & Ecotourism
9.3.8Managing Tourism - Quotas & Tourism Hubs
9.3.9Case Study: Blackpool (UK)
9.3.10Mathematical Skills: Changing Economic World
10Paper 2 - Resource Provision
10.1Food
10.2Patterns of Food Supply & Demand
10.3Challenges of Food Supply
10.4Energy
10.5Patterns of Energy Supply & Demand
Jump to other topics
1Paper 1 - Changing River Environnments
1.1Characteristics of Rivers
1.2River Landforms
1.3Rivers: Opportunities & Hazards
1.4The Bradshaw Model
1.5The Drainage Basin & the Water Cycle
1.6Processes Operating in a Drainage Basin
2Paper 1 - Changing Coastal Environments
2.1Physical Processes that Shape the Coast
2.1.1Processes of Erosion
2.1.2Corrosion & Corrasion
2.1.3Transportation
2.1.4Deposition
2.1.5Longshore Drift
2.1.6Types of Waves
2.1.7Case Study: The Holderness Coast (UK)
2.1.8Case Study: The Holderness Coast - Management
2.1.9Case Study: The Holderness Coast - Defences
2.1.10Diagnostic Misconceptions - Swash & Backwash
2.2Landforms
2.3Opportunities & Hazards
2.4Tropical Storms
2.4.1Tropical Storms
2.4.2Structure of Tropical Storms
2.4.3Causes of Tropical Storms
2.4.4Effects of Tropical Storms
2.4.5Hazards of Tropical Storms
2.4.6Case Study: Hurricane Katrina - Effects
2.4.7Case Study: Hurricane Katrina - Responses
2.4.8Case Study: Cyclone Nargis - Responses
2.4.9Case Study: Cyclone Nargis
2.4.10Mathematical Skills: Weather Hazards
2.4.11Diagnostic Misconceptions - Rainfall
3Paper 1 - Changing Ecosystems
3.1Antarctic
3.2Threats to the Antarctic
3.3Tropical Rainforest
3.4Tropical Rainforest: Threats
4Paper 1 - Tectonic Hazards
4.1The Structure of the Earth
4.2The Processes of Earthquakes & Volcanoes
4.2.1Earthquakes: Processes & Characteristics
4.2.2Earthquake Hazards
4.2.3Types of Volcano
4.2.4Classification & Features
4.2.5Volcanic Hazards
4.2.6Diagnostic Misconceptions - Lava
4.2.7Diagnostic Misconceptions - Location of Volcanoes
4.2.8Diagnostic Misconceptions - Focus vs Epicentre
4.2.9Diagnostic Misconceptions - Sliding Plates
4.3The Impacts of Tectonic Hazards
5Paper 1 - Climate Change
5.1Natural & Human Causes of Climate Change
5.2Impacts of Climate Change
5.3Responses to Climate Change
6Paper 2 - Changing Populations
6.1Populations Grow & Decline
6.2Population Structures Over Time
7Paper 2 - Changing Towns & Cities
7.1Where People Live
7.2Opportunities & Challenges of Urbanisation
8Paper 2 - Development
8.1Measuring Development
8.2Uneven Development
8.3Sustainable Development
9Paper 2 - Changing Economies
9.1Changing Employment Structures
9.2Globalisation
9.3Tourism
9.3.1Factors Leading to the Growth of Tourism
9.3.2The Butler Model
9.3.3Benefits of Tourism - Economic
9.3.4Benefits of Tourism - Social, Cultural & Env.
9.3.5Problems with Tourism - Economic
9.3.6Problems of Tourism - Social, Cultural & Env.
9.3.7Managing Tourism - Sustainability & Ecotourism
9.3.8Managing Tourism - Quotas & Tourism Hubs
9.3.9Case Study: Blackpool (UK)
9.3.10Mathematical Skills: Changing Economic World
10Paper 2 - Resource Provision
10.1Food
10.2Patterns of Food Supply & Demand
10.3Challenges of Food Supply
10.4Energy
10.5Patterns of Energy Supply & Demand
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