Highlight factors responsible for the growth of TNCs in the global economy?

Reasons for growth of TNCs in the global economy.

• Global expansion of a major product with worldwide markets, such as Coca Cola
• Take-over of foreign competitor firms, such as BMW
• Merger with foreign firms into one large international company, such as GlaxoSmithKline
• Vertical integration: acquiring the companies that sell you materials and components, and/or that you sell on to for manufacture, assembly or sales.
• Horizontal integration: acquiring the companies that make similar components that, along with yours, will go into the final product.
• Diversification: using the profits from one major company to purchase companies dealing with different products in order to spread risks from loss of sales or financial fluctuations.
• Risk dispersal: firms may find it advantageous to distribute their plants in a range of countries so that union disputes, government instability, supply disruptions and financial uncertainty in any one country does not _____ ________ _____ ________ _________ _________ ________ ___.
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