WJEC A-Level Sociology 601-5237-0
Culture and the Social Construction of Culture
Socialisation and Its Agencies
Socialisation and Identity
Families and HouseholdsAcquiring Culture
Youth CulturesAcquiring Culture
Research Methods: Primary and Secondary
Sampling, Ethics and Practical Issues
Key Concepts and Theories of Research
EducationUnderstanding Society
MediaUnderstanding Society
ReligionUnderstanding Society
Crime and DeviancePower and Control
Health and DisabilityPower and Control
World SociologyPower and Control
Applied Methods: Designing Sociological Research
Social Inequality: Evidence and Patterns
Theories and Explanations of Inequality and Stratification
World Sociology
Transnational corporations and world trade
- 1 thing to know
- A2 Unit 3
Overview
Transnational corporation, race to the bottom and transfer pricing.
What you need to know
Answer each one before you reveal it.
Questions from this subtopic
Each one with the model answer underneath.
- 1
What is a transnational corporation?
Model answer
A transnational corporation is a firm that owns or controls production in more than one country and plans its operations across national borders.
- 2
How can a corporation outweigh a national government?
Model answer
The largest corporations have revenues greater than the national income of many countries and can move investment elsewhere, which limits what a government dares to demand.
- 3
What is meant by a race to the bottom?
Model answer
It is the competition between governments to attract investment by offering lower taxes, weaker regulation and cheaper labour than their rivals.
- 4
What is transfer pricing?
Model answer
Transfer pricing is the practice of setting artificial prices for goods traded between a corporation's own subsidiaries so that profit appears in low-tax jurisdictions.
- 5
How does subcontracting spread responsibility for working conditions?
Model answer
A brand buys from suppliers who subcontract again, so no company in the chain admits responsibility for the wages or safety of the people who actually make the product.
- 6
What did the collapse of the Rana Plaza factory building in 2013 reveal?
Model answer
It killed more than a thousand garment workers producing for well-known brands and exposed how little those brands knew or controlled about the buildings their clothes came from.
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