What are transnational corporations? Part II (p. 15)

• Humanities
• Middelbare school
• vwo
• Leerjaar 2

How has globalization shaped the world?

Statement of Inquiry: 

Globalization has occured due to a variety of processes that have changed the world, bringing both opportunites and challenges.

Key Concept: Change

Related Concept: Globalization; Processes

Global Context: Globalization and sustainability 

What are transnational corporations? 

Today, you will investigate how the production process of transnational corporations or multinationals is organized and how this affects inequality.

First read G224 Multinationals and check out Figure 7.19 about the locations of McDonald's around the globe. 

Watch the video about 37 McDonald's foods you probably haven't tried and answer the question. 

In about 50 words, and with the use of G224 and the video , explain why McDonalds is a classic example of a multinational company.

What are transnational corporations? 

Globalization means companies can make their products wherever they wish and as inexpensively as possible. The distribution of work among different countires is called the international division of labour. 

Read G225 International division of labour and check out Figure 7.21 about the three different phases in the production chain. 

On the next slide, drag the examples to the right part of the production process. 

Phase 1: 

product design 

Phase 2: Manufacturing 

Phase 3: 

Product sales 

Factories

Low wage country

Emerging country

Research & Development

Advertising

Core countries

Head office

Shipping & Distribution

Core countries

What are transnational corporations? 

Globalization has a major impact on local, regional an national levels. It is causing growing inequality between different income groups (social inequality) and between different regions (regional inequality). 

Read G226 Globalization and inequality. 

Watch the video about globalization and inequality and answer the question. 

In about 50 words, and with the use of G226 and the video , describe how the global inequality looks like.

What are transnational corporations? 

Another word for emerging countires is newly industrialized countries (NIC). 

Read G227 Newly industrialized countries (NIC). (Only he first dot, not the squares!)

Answer the question on the next slide. 

Consider the following statement:
"Every Newly Industrialized Country could also be called a tiger economy'
Explain if this statement is true or false.

What are transnational corporations? 

ACTIVITY: Desicion-making

Read the Activity box on p. 15 in your I&S Study Book. 

You will be taking over one of the following characters:

- CEO of the company in France

- Consumer

- Factory owner in Country A, B or C 

Write down a short proposal for one of the three options (Country A, B or C) for a new manufacturing location from a Frech TNC to create it's products. 

Read the corresponding perspective of your character (p.15). Decide in which country the new location for a manufacturing department needs to be.
In about 100 words, explain why you would like to work with this country
Country A = Costs: relatively high, working conditions: excellent
Country B = Costs: relatively cheap, working conditions: good
Country C = Costs: very cheap, working conditions: average