The economy is the state of a country or region in terms of the production and consumption of goods and services and the supply of money. Economy is usually measured on a national scale and would incorporate the trade and services within a country; however this can also occur on an international scale which is known as globalisation. Transnational co-operations (TNCs) and Newly Industrialized Country (NICs) play a fundamental role in the interaction of economies worldwide (global economy). A TNC is a very large company that has offices and factories in many different countries, for example Nike. On the other hand, a NIC is a newly industrialized country such as Singapore, South Korea and Hong Kong (discovered in the 1970s/80s) and more recent NICs (discovered in the late 2000s) include China, India, Malaysia and Thailand. NICs are usually LEDCs that have undergone recent, rapid industrialisation and experience rising incomes, high growth rates and international involvement. Governments of these NICs kept close control over industrial development, and encouraged industries to export manufactured products to the more developed and richer countries abroad. The percentage of people working in the primary sector has declined as people move from jobs in rural areas to urban areas so that they can work in factories as the industrial base continues to develop.
A ‘TNC’ is a company that operates in at least two countries. They often have management headquarters in their home country and operate in host countries alongside; examples would include GlaxoSmithKline, BP, Wal-Mart and Coca-Cola. TNCs have a powerful influence on both local economies and international relations, they play and important role in globalisation as they are easily able to approach foreign markets. For example, McDonalds now operates in more than 120 countries and has over 35,000 restaurants worldwide.