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PPT 8 - Coggle Diagram
PPT 8
TNCs and culture
Global culture is most often exemplified by the ubiquity of consumer icons such as Coca-Cola and McDonald’s
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What many people do not realise is that many TNCs hold influence as they own much of the world’s patents.
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Globally, over 85% of all royalty payments go to the USA, EU and Japan.
This means that patents benefit the USA and EU whilst emerging powers and development countries continually pay out.
In 2013, however, Chinese innovators applied for 652,000 patents
Patents can also act as a form of control. The ownership of gene technology or crops can mean influence over other nations
A patent is intellectual property which prevent someone else from using, copying or selling an idea or product you have created. You have sole control of that product
Monsanto is a company which changed the genes of a Soy bean to ensure that it would not be killed by round up weed killer.
Problems
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Pollen from Monsanto plant will be spread to other plants, meaning accidental patent offences are committed.
Power of the TNC
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Fortune 500 represented the largest 500 TNC in 2014 they made $1.7 trillion in profit and employer 65 million people
If the TNC is state owned then the profits return to the state, in China the largest 12 TNC are state owned.
o The specification requires that you are able to understand the ‘westernisation’ and cultural influence of the West.
o Aspects discussed in Globalisation, use these notes.