Explain how one transnational corporation (TNC) has contributed to the globalisation of the world’s economy - 4 marks

AO1 - Demonstrate knowledge and understanding of places, environments, concepts, processes, interactions and change, at a variety of scales*This answer is general but can/should be used in conjunction with any case studyGlobalisation is the process by which the world is becoming increasingly interconnected which has increased the production of goods and services. One TNC is Nike, who's headquarters is in the USA. However, 75% of their workforce is in Asia and have 700 factories world wide showing the extent and scale of the globalisation. TNC's reinforce and contribute to globalisation by allowing utilising cheap raw materials, cheap labour supply, creating infrastructure which means they have access to the markets where these goods can be produced and sold. Therefore, TNC' contribute to globalisation as they increase flows of trade in the area bringing new areas, especially LEDC's into the capitalist market. This in turn Improves the skills base of the local population and therefore the success of the global brand may attract other TNCs setting off cumulative causation reinforcing globalisation. This is just one example of a TNC, but TNC's collectively have a huge impact on the globalisation of the world's economy bringing new areas into the market.