more on the influences of TNCs over the global economic system

trade patterns

-about

-facts(% of global trade that is tncs)(facts on nike and no,tech co.s in china)

-what do some LICs/NEEs do?

tncs take advantage of the g.s.in.p and global production networks (offshoring an outsoucing to diff countries)

tncs account for ~80% of global trade

they direct FDI at nees and lics in order to produce goods cheaper so profit for them and profit ultimately means can assert power

tech co’s (like Apple) have over 30,000 factories in china and employs over 2.3 million

tncs exploit trade patterns in order to manufacture and produce goods where it is cheaper

developing countries who crave tnc investment= often adopt or show willingness to adopt western values in order to appease the tncs(including market mechanisms and elements of caps)

nike=in 42 countries

if a tnc has high profit what does this ultimately mean?

it increases its ability to exert influence over economic ideologies in diff countries (eg can influence increase of caps ext)

some tnc’s economies are greater than that of the GDP of some countries

how do patents over products, esp tech, help tncs ncrease their influence over the global economic system?

patent= a granting of exclusive rights and ownership of intellectual property to a creator/inventor

tncs patent all their products as to increase their upperhand and adv and competitive edge as no others can steal this design

this keeps lics in a state of dependancy (links to dependency theory and world systems theory), as LICs=forced to pay royalty fees in order to access designs to these products/these products

^^this money goes to tncs who in turn use it to invest and innovate to further their profit

patents=other businesses are unable to direclty compete and therefore this keeps the tnc at the top of the global market (for certain products and in general)

apple= has patents on the iPhone

pharmaceutical companies have patents on medicines and vaccines (eg: covid-19 vaccine was patented)

reinforces intellectual influence and preserves econ status

TNCs exert i_______ over the global e_____ system through d_______ influence, not d_________

therefore meaning that the tncs l_____ the same p_____ and economic influence as I_____’s

influence

economic

defacto

dejure

lack

political

IGOS’s

how do igo’s have a high influence over the global economy?

give an eg

SAPS(structural adjustment programes) coincide with grants/loans

for example, in 2000 tanzania was offered debt relief (~£72 mill??) but provided that tanzania adopted trade liberalisation and privatisation of water (now Biwater-uk firm- controls a large proportion of its water)

these SAPs align with the cap ideals and interests of free markets and thus superpowers

therefore that shape the global economy in many ways→ ways that benefit them concretely

although tncs can influence the glob e___ system through d______ means of t____ patterns and p_____, they lack the a____ to enforce S___

although tncs v____ is increasing in p____ in organisations such at the W____ E_____ F____, where many leaders of tncs meet as well as other i____ people

BUT the wef= not f_____

economic

defacto

trade

patents

ability

SAPs

voice

power

world economic forum

influencial

formal

what has china done despite being a communist nation and why?

adopted market mechanisms to increase FDI

profit is ultimately dep on caps and they have realised this so needed to introduce some mehcnaisms