How Does Tnc Affect Me Essay

Introduction:

Everyone is connected to globalisation. Common foods that you buy may seem like they originated here in Australia, however they mostly originate from another country. Products like your iPhone, Nike shoes or your Nestle coffee didn’t originate here in Australia. For these products to be manufactured here would cost too much so the people behind these large corporations called TNC’s, move out to developing countries to get cheap labour.

History:

Most TNC's that originate from relatively rich countries. They stop manufacturing in their home country because the cost is too much, which leads to an indirect loss of jobs. The headquarters, research and development stay in the home country with no need to move. Among all the TNC’s in the world, oil companies and car manufacturing companies are the most common.

TNC’s have an impact on me by the products they release, the product I buy and the money they make for the country I live in. I own an iPhone and it was not manufactured in Australia. The iPhones parts travelled a long distance to get here in Australia. The metal was mined in one country while it was assembled in another. I buying the iPhone gives money to apple which gives apples mother country, California, a higher GDP which helps in numerous ways. In Australia’s case, the main company that brings money to the country is BHP Billiton which raises Australia’s standard of living.

What is a TNC?

A Transnational Corporation (TNC) is a company which works in at least 2 countries. Some of the well-known TNC’s that you may know are Toyota, Vodafone, Volkswagen, Nestle, Apple and the famous Nike. TNC’s operate very hierarchical with the headquarters, research and development often located in the mother country.

What are the TNC positives and negatives? How does it affect the