The working of the global economy involves a number of major players, that is organisations that have great power and influence. The UK is no longer Tesco’s only market. This way of adapting international stores to suit local cultures is called ‘glocalisation’. The issues are complex. Globalising its chain of supermarkets. Key to the firm’s growth has been a strategy of diversification into new markets, becoming a ‘one-stop’ shop for electrical goods, toys and home products in addition to its traditional business of food. After opening eastern European stores in Hungary and Poland, entry into Asian markets began in
The company claims not, saying that it makes sound business sense to pay attention to local customers’ cultures and to use local supply chains. The Good And The Bad The growth of globalisation has given rise to a major debate about its real benefits. The growth of globalisation has given rise to a major debate about its real benefits. From a single supermarket in , Tesco now has over stores and employs around people. In , it made its first move outside Europe, opening stores in Taiwan and Thailand and in South Korea and following year.
Geography Unit 1, Going Global Case Study 2 – Transnational Tesco | Note
Tesco — A Transnational Retailer. Tesco products are usually manufactured in low-wage countries. What has Namibia gained from small number of foreign technicians.
Tesco case study TNC
After opening eastern European stores in Hungary and Poland, entry into Asian markets began in At present there seems to be a uranium rush. The firm’s chief has acknowledged that ‘these issues are of growing importance to our customers.
As tescoo company has prospered so it has turned it attentions to other minerals.
To be close to major markets To sell inside trade barriers To take advantage of incentives offered by governments To be able to operate without too many restrictions. Low-cost items like this are sourced via Teso agents in Hong Kong, which use suppliers in China, Thailand, Mauritius, Bangladesh, Sri Lanka and India where Shivam, a garment manufacturer based in Fairidabad, produces clothes for the supermarket chain.
Average hourly wages are only 50p in China and India, and even less in Sri Lanka, which explains why products can be sold so cheaply in the UK, driving up Sales and profits. The growth of globalisation has given rise to a major debate about its real benefits. In total it has over 1 overseas stores and employs more than people. Is Tesco exploiting people in Asia, or helping to spread wealth? Being involved in the global economy create jobs, the opportunity for people to earn a steady wage and chance to improve their quality of life.
By continuing to use this website, you agree to their use. Aside from agriculture, industry and domestic purposes there are also other strong motives for this:.
Exposure to even relatively low levels of radiations over a long period can be extremely harmful tot he health of workers and communities living around uranium mines. Created by Holly Lovering about 5 years ago. Technology has also played a role, with the advent of online shopping. It is interesting to note that over half of them are involved in the oil industry.
Rio Tinto is a transnational Mining and resources group, founded in There are however costs to be considered. Bythe first Tesco self-service supermarket had opened in a converted cinema in Maldon. Disaster hotspots – the Philippines.
They are vital to the workings of the global economy — as raw material sources, as a fuel for transport, and as generators of electricity for industry and the home. Does Tesco damage the environment?
Over the last 10 years it has quadrupled its profits to become the UK’s leading retailer and a major TNC.
Transnational Corporations (TNC’s)
Case study taken from the Edexcel AS Geography textbook, with some added information. Please read our terms and conditions for more information.
In the first Tesco stores opened in China, where rising wealth among the elite means that there is a growing number of affluent customers.