TNC's

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  • Created by: Sophia
  • Created on: 17-05-13 13:57

TNC's

Advantages

  • The presence of TNC's in country improves roads, airports and services.
  • TNC's invest in the economies of developing countries and can help raise living standards.
  • TNC's seem to be central to economic growth in today's world
  • TNC's have brought political stability to countries eg. China
  • TNC's offer consumers a large degree of consumer choice and can improve standard of living
  • TNC's have allowed consumers in developing coutries to buy consumer goods taht they would have never been able to buy in the past
  • Even though pay is low, TNC's still employ people and therefore lower unemployment rate.

Disadvantages

  • TNC's exploit cheap labour. as a result are paid badly
  • Profits don't generally remain within the country in which the goods are manufactured
  • TNC's may move their operations out of the country at any point in search of cheaper production and lower wages elsewhere
  • Because they are transnational, TNC's can avoid paying full taxes in the countries where they operate
  • TNC's are responsible for a growing global wealth divide by choosing to invest in certain regions
  • TNC's are responsible for massive environmental degradation
  • The products of TNC's are consumed in almost every country on earth. This destroys tastes and cultures
  • In the factories, unions are banned, health and safety is poor and wages are low

Evaluation

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