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Global governance (Trade Blocs - form an alliance to create economic…
Global governance
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TNCs - Large companies that produce, sell or are located in multiple countries. :red_flag:
Spatial Organisation
HQ's - located in a major city in the home country (access to transport, communications and skilled labour)
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Production - developing counties (lower costs) or close to markets they're selling too (avoid paying tariffs and non-tariff barriers)
Growth and expansion
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Subcontracting - pay another company to manufacture, without actually owning them
Vertical integration - take over another part of the supply chain (own the whole supply chain eg. Shell)
Horizontal integration - company merges / takes over another company at the same stage of production (diversify its operations)
Operate at all scales
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Secondary - manufacturing / processing raw materials (invest in countries with low labour costs / poor environmental regulation)
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