Chapter Overview
The role of corporations in shaping global economic geographies and local development.
This chapter examines transnational corporations (TNCs) as powerful actors in the global economy. We explore how TNCs organize their operations across multiple countries, why they locate where they do, and how their investment decisions shape the economic fortunes of regions around the world. Understanding TNCs is essential for grasping contemporary patterns of globalization and development.
Chapter Resources
Required Reading
- Textbook: Chapter 5
- Coe, Kelly & Yeung (2019)
- Economic Geography: A Contemporary Introduction
Download Slides
Video Content
- Multiple lecture sections
- Corporate geography
- Watch at your own pace
Video Lectures
Section 5.1: What are Transnational Corporations? ~15 minutes
Defining TNCs and understanding their scale, scope, and significance in the global economy.
Section 5.2: Location Decisions & FDI ~15 minutes
Why do TNCs locate where they do? Understanding foreign direct investment (FDI) patterns and location factors.
Section 5.3: TNCs and Development ~15 minutes
The complex relationship between TNC investment and local/regional development outcomes.
Section 5.4: Corporate Power & Accountability ~15 minutes
Debates about TNC power, corporate social responsibility, and regulation in the global economy.
Key Takeaways
TNC Fundamentals
- TNCs control significant portions of global trade, production, and employment
- Location decisions are driven by market access, cost reduction, and strategic assets
- TNCs can bring investment, jobs, and technology but also create dependencies
- The relationship between TNCs and places is negotiated and contested
Key Concepts
- Foreign Direct Investment (FDI): Investment that establishes lasting interest in foreign enterprises Subsidiary: A foreign-owned operation controlled by a parent company
- Transfer Pricing: How TNCs move profits between jurisdictions
- Embeddedness: The depth of TNC connections to local economies
- Corporate Social Responsibility: Voluntary commitments to social and environmental goals
Discussion Questions
Consider these questions as you watch the lectures and complete the readings:
- What TNCs operate in your local area, and how did they come to be there?
- Should governments compete to attract TNC investment? What are the trade-offs?
- How do TNCs balance global efficiency with local responsiveness?
- What responsibilities do TNCs have to the communities where they operate?
- How has TNC behavior changed in response to globalization critiques?