- Easiest way to think of this question is to think of the challenges of a nation. Could be economic, political, social or even environmental.
UK
Companies Becoming Foreign-Owned:
- The national identity of some British companies is changing as they are brought by overseas TNCs. Cadbury was bought by US TNC Kraft Foods in 2010
- 1950s saw the world’s second manufacturer of cars and now competition has come from Germany and Japan. Land Rovers made by Tata Motors. Some parts still made in the UK but employment and profits have decreased.
- ‘Made in Britain’ remains part of the UK identity in a globalising world. Huge economic challenge to the identity of the UK economy and can affect national identity.
Westernisation:
- The soft power of large TNCs e.g global media and retail companies. Can bring threats to culture, identity and home-grown companies.
- Westernisation is a problem for Africa and Asia as cultural erosion takes place and diets change
- Americanisation is potentially a threat for the UK identity. TNCs such as Apple, Facebook, McDonald’s, Disney, Nike can influence our behaviour.
- They use glocalisation, technology, cheap global distribution networks.
- These changes mean that the UK’s national identity becomes closer to that of America e.g capitalism, consumerism and all the cultures associated with the USA.
- Attitudes may change though; more people want locally sourced food and products that are made in Britain.
- Countries are producing more though e.g South Korea producing Samsung phones or places like Venezuela not allowing TNCs in. Challenges are very social, cultural and impact consumers and individual identity a lot.
Foreign-Ownership:
- UK is so globalised and has a free market that anyone world-wide can buy land or property here. China has a big stake in Heathrow Airport.
- Russian Elite who own flats in London.
- China and Gulf States buy industry to have billions to invest into the UK. Challenge to national identity as our own property businesses and land ownership reduces.
- Could reduce national sovereignty as other countries increasingly have power in the UK.
- Some believe this process will bring in FDI, investment helping GDP increase and support regeneration
Evaluation:
- Soft power cultures affect individual social identity the most as Americanisation changes our identities and who we are.
- Loss of ownership of companies and property that has the biggest impact on the identity of the country
- Sovereign states are increasingly powerful in the UK through FDI and investment.
- In a globalising world, these challenges are likely to increase with emerging powers like China increasingly influencing the UK.