. Foreign Direct Investment - There are several kinds of FDI, all of which involve TNCs increasing economic or industrial activity within a country.
▪ Offshoring – TNCs set up production facilities in developing countries, which have large, cheap workforces (e.g. Bangladesh)
▪ Foreign Mergers – TNCs from different countries join to form one larger company
▪ Foreign Acquisitions – A TNC acquires another company from abroad, often in a hostile way (may involve local job loss, lack of interest in the local environment, etc)
▪ Transfer Pricing – TNCs sometimes channel their profits through subsidiaries in tax havens (e.g. Ireland) Alternatively, national governments can hinder or limit the effects of globalisation through policies.