TNCs and global economic system Flashcards
(4 cards)
Facts
300 of largest TNCs control 1/4 of global economy
Patents
Exclusive rights for an invention
Benefits inventors by providing them legal protection for their items
Allows TNCs to remain the leaders in that area of technology e.g. Apples phone technology
Ensures they make the most money off of that item by being the only one providing it
How do TNCs help maintain power?
TNCs influence global trade patterns
The global shift created a shift of economic power from the western world to Asia, which has made TNCs extremely powerful
Instead of trade only occurring between different countries, it now occurs globally intra-company between different branches
TNCs account for 80% all global trade
Intra-company trading creates power as a TNC will now own every part of it’s product instead of just the manufacturing, it will now own the very material extracted
TNCs as players in technology
TNCs feel obliged to patent their tech as they spend the time researching and developing
In 2016 USA and China had the most patents
Monsanto:
Using patent laws they ‘own’ every GM crop grown from their seed
They disallow farmers to save seed to regrow next season meaning they have to rebuy it every year
This generates significantly more money for the US
