1. The role of TNCs in international development Japanese investment in EU and the Pacific Rim countries
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5. Facts and figures 47,581 Sony 62,568 Nissan 111,052 Toyota 184,365 Mitsubishi 1994 revenue US $m Company 146,076 Denmark 68,949 Singapore 70,626 Malaysia 1,017,306 UK 26,164 Bangladesh GNP US$m Selected countries
10. Adv / disadv of TNCs Refer to page 189 / 190 There is a large market for cars in EU Government earns tax revenue from company and from workers New working practices have been introduced e.g. ‘just in time’ method. This enables UK workforce to operate more efficiently in increasingly competitive markets Regional aid is available from EU and / or UK to help with capital costs Governments have given financial incentives to locate in old industrial areas which experience high unemployment Disadvantages Advantage to UK and Region Advantage to TNC Labour costs are cheaper in UK than in Japan Reduce the cost of transporting cars from Japan to EU Bypass EU tariffs and escape paying import taxes on cars they manufacture and sell in Europe Possible closure threat: in a recession , the EU branch plants would be the first to be closed creating job losses Other companies attracted to set up component companies in the area Research and development: this sector with the most highly paid jobs tends to remain in Japan Greater consumer choice : greater variety of models from different manufacturers are available Competition : EU firms have had to compete with cheaper Japanese models Jobs are created not only in the assembly plant but also other component factories
11. There is a large market for cars in EU Government earns tax revenue from company and from workers New working practices have been introduced e.g. ‘just in time’ method. This enables UK workforce to operate more efficiently in increasingly competitive markets Regional aid is available from EU and / or UK to help with capital costs Governments have given financial incentives to locate in old industrial areas which experience high unemployment Disadvantages Advantage to UK and Region Advantage to TNC Labour costs are cheaper in UK than in Japan Reduce the cost of transporting cars from Japan to EU Bypass EU tariffs and escape paying import taxes on cars they manufacture and sell in Europe Possible closure threat: in a recession , the EU branch plants would be the first to be closed creating job losses Other companies attracted to set up component companies in the area Research and development: this sector with the most highly paid jobs tends to remain in Japan Greater consumer choice : greater variety of models from different manufacturers are available Competition : EU firms have had to compete with cheaper Japanese models Jobs are created not only in the assembly plant but also other component factories
12. There is a large market for cars in EU Government earns tax revenue from company and from workers New working practices have been introduced e.g. ‘just in time’ method. This enables UK workforce to operate more efficiently in increasingly competitive markets Regional aid is available from EU and / or UK to help with capital costs Governments have given financial incentives to locate in old industrial areas which experience high unemployment Disadvantages Advantage to UK and Region Advantage to TNC Labour costs are cheaper in UK than in Japan Reduce the cost of transporting cars from Japan to EU Bypass EU tariffs and escape paying import taxes on cars they manufacture and sell in Europe Possible closure threat: in a recession , the EU branch plants would be the first to be closed creating job losses Other companies attracted to set up component companies in the area Research and development: this sector with the most highly paid jobs tends to remain in Japan Greater consumer choice : greater variety of models from different manufacturers are available Competition : EU firms have had to compete with cheaper Japanese models Jobs are created not only in the assembly plant but also other component factories
13. There is a large market for cars in EU Government earns tax revenue from company and from workers New working practices have been introduced e.g. ‘just in time’ method. This enables UK workforce to operate more efficiently in increasingly competitive markets Regional aid is available from EU and / or UK to help with capital costs Governments have given financial incentives to locate in old industrial areas which experience high unemployment Disadvantages Advantage to UK and Region Advantage to TNC Labour costs are cheaper in UK than in Japan Reduce the cost of transporting cars from Japan to EU Bypass EU tariffs and escape paying import taxes on cars they manufacture and sell in Europe Possible closure threat: in a recession , the EU branch plants would be the first to be closed creating job losses Other companies attracted to set up component companies in the area Research and development: this sector with the most highly paid jobs tends to remain in Japan Greater consumer choice : greater variety of models from different manufacturers are available Competition : EU firms have had to compete with cheaper Japanese models Jobs are created not only in the assembly plant but also other component factories