TNC Case Study - Coca Cola

Transnational companies are huge companies that operate in more than one country. Stereotypically the HQ is in an MEDC while factories are in developing countries as TNC's like to exploit cheap labor and land to maximize profits.


Coca Cola is the biggest manufacturer of drinks in the world. HQ is in Atlanta, America. &0% of it sales are from outside the USA. They don't only sell drinks but sell nearly 400 different products in more than 200 countries.


Positives of Coca Cola on host countries such as Russia:

• creates jobs
• offer training and education
• has invested $1.5 billion in Russian economy
• run community schemes

Negative of CC in host countries:

• low paid jobs in tough conditions
• footloose capitalism - when wages rise they move operations to a lower cost area
• environmental problems ie. degradation
• profits are returned to source country
• to date there have been 179 human rights violations of workers

There are many advantages to being a TNC:

• monopoly power
• access to larger markets
• economies of scale
• offered incentives to invest in certain countries