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WAGeographyQuick questions
Unit 3: Global Networks and Interconnections
Quick questions on Transnational corporations: WACE Year 12 Geography
2short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What are the power of TNCs?Show answer
TNCs influence trade rules, lobby governments, and can play countries against one another to win tax breaks and lighter regulation, a process sometimes called a race to the bottom. Because they can relocate investment, host governments have limited leverage. At the same time, states still regulate, tax and approve TNC activity, so power is shared rather than absolute.
What are consequences for places?Show answer
For host places, TNCs can bring investment, jobs, technology transfer and infrastructure. But they can also pay low wages, export profits, exhaust resources, pollute, and leave abruptly if costs rise elsewhere. For home places, TNCs generate corporate profit and high-value jobs but may hollow out manufacturing employment as production moves offshore.
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