3.2.4

TNCs & Globalisation

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TNCs and Globalisation

Aside from global production networks, TNCs help globalisation to spread and also take advantage of the economic liberalisation that has come with globalisation.

Glocalisation

Glocalisation

  • TNCs use glocalisation to help spread globalisation. This means that they adapt their products to the needs of local consumers.
  • For example, lots of global food TNCs offer a different menu in India where beef is not eaten.
    • Since 2012, McDonald’s has served the McVeggie and McSpicy Paneer in India.
Glocalisation reflecting laws

Glocalisation reflecting laws

  • Sometimes, glocalisation reflects the different laws in different countries.
  • For example, BMW makes right-hand drive cars for the UK because we drive on the left whereas, in Germany, cars are left-hand drive.
Development of new markets

Development of new markets

  • TNCs use the development of new markets to benefit from glocalisation.
  • As countries develop and their populations have higher disposable incomes to spend on ‘luxury’ items, TNCs are able to access new markets and sell their products in these countries.
Economic liberalisation

Economic liberalisation

  • TNCs take advantage of economic liberalisation. They take advantage of the removal of barriers to trade to earn more profit and increase their market share.
  • TNCs use outsourcing and offshoring to make sure that they are able to maximise their profits by minimising the costs of producing their goods.
Jump to other topics
1

Physical Geography

1.1

River Environments

1.2

Coastal Environments

1.3

Hazardous Environments - Tropical Cyclones

1.4

Hazardous Environments - Earthquakes & Volcanoes

2

Human Geography

3

Global Issues

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