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Globalisation and TNCs

A presentation on the impact of globalisation and TNCs on the world and pros and cons of them
by

Christina Cheung

on 9 January 2014

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Transcript of Globalisation and TNCs

Christina and Carole Globalisation and TNCs What is a TNC? TNC stands for Trans-national Corporation. They are companies that operate in several countries. Conclusion Pros and Cons of TNCs: Thanks for listening so attentively! What are the Top TNCS? - cheap labour supply
- good transport
- access to markets where the goods are sold
- friendly government policies Factors that attract TNCs: Back in 1600, the British East India Company was the largest company in the world But what about today? Here's a table indicating the top TNCs in 2011 A few examples are: Investigation We are now going to investigate 2 major TNCs we've mentioned just now Development of Starbucks -The first store: 1971, Seattle's Pike Place Market
- Founders: Zev Siegl, Jerry Baldwin, Gordon Bowker - Began to expand in 1981
-First store out of the country: Canada, then Japan
- Now owns stores in 61 countries around the globe http://www.loxcel.com/sbux What does Starbucks mean? Name: - Named after Starbuck, Captain Ahab's first mate in the novel Moby-Dick. He was very fond of coffee. Logo: - People think that the lady in their green label with 2 fishtails is a mermaid. But it's actually a Siren from Greek Mythology.
- Starbucks says they chose it because it captures the spirit of Seattle back in 1971, when Seattle was known for sailing and seaports - Sirens symoblises obsession, addiction, and death. Production: -Coffee beans are produced at farms, then roasted in the states or Netherlands. - 50 cent per average cup of coffee Pros: Cons: - Creates new job opportunities - increases awareness of events - Increases awareness of global issues - Ensure minimum standards - Cheaper labour and goods - Larger profit - Source of materials and resources - Mostly happens in MEDCs - No guarantee it will benefit in the local community's wealth. - Pollute the environment - Unfair trade --> Poverty - Does not help LEDCs become MEDCs. - May threat the world's cultural diversity. - Child labour - Exploitation - Unemployment. - Brings wealth for development. - Sharing of ideas, experiences and lifestyles of people and cultures. - Demand for product increase = more coffee beans = even less profit for farmers. - Starbucks says they participates in Fairtrade. But many wonder if that's true. - Some think they use Fairtrade certification as a marketing tool. Americans consume 400 million cups of coffee per day = 146 000 000 000 cups of coffee per year. - They use recycled, post-consumer paper for paper cups. Largest Publicly traded food service competitors (2009) Starbuck's sales (2012): $40 billion Ghana's GDP per capita (2012):
$3300 I think that Starbucks is overrated. The Coffee isn't all that good, and is very expensive. I don't think it's a very fair or nice company. I like the special drinks of Starbucks, but the coffee isn't the best I've tasted. Student's opinion on Starbucks My opinion is that I think that Starbucks is a pretty good TNC. Other then the fact that the wage for the farmers are unfair, their marketing products and food taste really satisfying. It might be a little too expensive but the quality of food is excellent. Our opinions on TNCs Carole's Opinion: my opinion is that TNCs did more bad then good, because most if the TNCs don't care about the workers that work for their product, they just care about their profit. They give the workers cheap labour for doing all the work for them, and keep most of the wages to themselves. More pollution is happening, ruining people's hometowns, therefore they need to move. TNCs also changes cultures around the world, so more and more culture is lost everyday Christina's opinion: I think that TNCs are partly good, but mostly bad. It helps the world develop into a better place, but also creates pollution, poverty etc.
I also think that TNCs only benefit the rich people, and makes life worse for poor people. They exploit the farmers and allow them to live in poor conditions and child labour. History of H&M The beginning:
In 1947, the first store opens in Sweden, only selling women's clothes It is called “Hennes” back then, meaning “for her”.

Founder Erling Persson buys a store. Changed it so it sales men’s and children’s clothes. He then named it Hennes & Mauritz. H&M in a global scale H & M has 2492 stores which is distributed, in Africa, Asia, Europe and North America. In 2011 H&M employed around 94,000 people.

81% of the companies stores are in Europe H&M

Doesn't own any factories but most of its products are made in factories in Asia and Europe. H&M stores in UK and Ireland, in August 2011 H&M stores in UK and Ireland, in august 2011 What represents H&M? H&M incorporated many organic cotton in their clothes
H&M also used recycles wool, polyester and PET bottles for their clothes
H&M also has a few sustainable fashion campaigns. H&M marketing
H&M believe in responsible marketing. H&M talk about its business idea of fashion and quality, for the best price. They would invite celebrities to do advertise their products.

They also run cause-related marketing campaigns, for example “ Fashion Against Aids" Compare
2009= 9.93 billion pounds
2010=9.93 billion pounds
2011= 14.30 billion pounds H&M turn over Uzbekistan GDP 2009= 2806.69 USD
2010= 3200 USD
2011= 3300 USD Child Labour Media often shows companies where the goods produce by child labor, or the employees in bad conditions

Most of the cotton in the cotton fields, are picked by children in Uzbekistan

Working has negative effects on the bodies and minds for children

Most of the children is pressured by H & M to work in the field. H&M advertisements Critical statements H&M got in trouble for using computer made bodies and real heads

Isabeli Fontana, who models H&M’s swimming suits. Skin tone is too dark for her, it is so dark that doctors are a bit concerned for her. H & M as a TNC Aspects h&m is improving to make their company more sustainable In 2004 H&M is the biggest user of organic cotton. There target is to have a 20% increase in 2020.

Reduction on Pesticides

3600 hours of sustainability training for the buyers and designers

LED lights have been introduced in stores

80% of the stock is transported by ship or rail Global Practices The H&M stores in UK and Ireland, in August 2011 Students Opinion on H&M I think that H&M is quite good, compared to other fast fashion companies like Forever21. Their fashion is up to date, the quality is OK (but of course, you can't compare it to stores like Hollister), the price is good and they use organic cotton. The only thing I'm against is how they allow child labour. I don't think H&M is a good company. The quality for me, is horrible. And H&M became so popular in HK that where ever I look, there's a person wearing H&M products or some exact same shirt that I bought. But let me tell you, girls hate it when other girls wear the same clothing as they are, it's annoying.
And recently, I bought some jewelry from H&M, I wore it twice, accidentally dipped it in water, and guess what? The colouring wore off, and the plastic gems fell off. Same for the clothing, after a few times of washing, the colouring fades. Not good at all.
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