What do all tncs have in common

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Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. They often have factories in countries that are not as economically developed because labour is cheaper.

Offices and headquarters tend to be located in the more developed world. When a TNC locates within a country, there are advantages and disadvantages.

Advantages of TNCs locating in a country include:. Disadvantages of TNCs locating in a country include:. Some Japanese car firms set up plants inside the EU to avoid import taxes being imposed on cars from Japan. Locate in low production-cost countries where wages are lower. As these are often the single largest cost for a firm, locating production in low-wage economies can maximise profits at a stroke. The divisions of an organisation will often be located in countries with different characteristics: The head office registered is usually in the country of origin, or a low business-tax country.

Branch plants: manufacturing of components takes place where a reliable product can be efficiently produced without threats to long-term continuity. Assembly will often occur close to the major market for the final product. Sales, Marketing and Service: take place close to the main markets for the product.

Our subjects Our Subjects. Explore Explore. Only one is based in Africa. Companies are only legally accountable to their shareholders for their financial performance. Accounts are presented yearly by means of an annual report. There is no formal requirement to present the impact of their activities overseas, nor do annual reports have to include information on social issues, human rights or environmental impact.