AQA A-Level Geography 7037
Water and Carbon Cycles
Hot Desert Systems and LandscapesLandscape
Coastal Systems and LandscapesLandscape
Glacial Systems and LandscapesLandscape
HazardsHazards or ecosystems
Ecosystems Under StressHazards or ecosystems
Global Systems and Global Governance
Changing Places
Contemporary Urban EnvironmentsHuman option
Population and the EnvironmentHuman option
Resource SecurityHuman option
Global Systems and Global Governance
Transnational Corporations
- 3 things to know
- Component 2
Overview
Recall questions on what a TNC is, its spatial organisation and production, vertical and horizontal integration, intra-firm trade and marketing, its positive impacts through employment, technology, infrastructure and government finances, and negative impacts through profit repatriation, on workers and the environment and through cultural homogenisation.
What you need to know
Answer each one before you reveal it.
What is intra-firm trade and how does it relate to TNC trading patterns?
How can TNCs positively impact host countries through government finances?
Questions from this subtopic
Each one with the model answer underneath.
- 1
Define a transnational corporation (TNC).
Model answer
A company that operates in more than one country, with headquarters in one country and production or services in others.
- 2
Describe the typical spatial organisation of a TNC.
Model answer
Headquarters are typically located in developed countries, while production facilities are distributed globally across multiple countries.
- 3
How do TNCs organise their production across different countries?
Model answer
Through global supply chains that link different stages of manufacturing across multiple countries.
- 4
What is vertical integration in the context of TNC linkages?
Model answer
When a TNC controls different stages of its supply chain, from raw materials to finished products.
- 5
What is horizontal integration in the context of TNC linkages?
Model answer
When a TNC expands across similar businesses at the same stage of production.
- 6
What is intra-firm trade and how does it relate to TNC trading patterns?
Model answer
Trade that occurs between subsidiaries of the same TNC located in different countries, forming a significant part of TNC trading patterns.
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