Agencies of development: TNCs
- Created by: hannah8
- Created on: 02-05-14 15:59
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- Agencies of Development: TNCs
- Summary
- Corporations that have globalised their operations
- They produce and sell around the world
- They use global supply chains
- They employ people in many different countries
- As a result of globalisation, there are more/larger TNCs than ever before
- As economic globalisation progresses, they are just as important as the State
- 2004/5: Of the 120 most important economic units in the world, 54 were nation-states, 66 were TNCs
- Majority of countries therefore have smaller economies than the 66 largest TNCs
- TNCs exist to make profit for their shareholders
- It is not their aim to help a country develop
- Most countries actively seek TNCs
- These are EPZs
- Countries setting up EPZs assume that the presence of TNCs will have benefits, even if initially its exploitation
- These are EPZs
- Corporations that have globalised their operations
- Modernisation theory/Neo-liberal
- TNCs are essential
- Able to introduce modern values
- Can kick-start an economy
- Able to introduce modern values
- Any hardships are comparable to what developed countries went through
- Painful but necessary
- TNCs are essential
- Dependency theory
- Presence of TNCs intensifies dependence
- Prevents local industry from growing
- Ensures the country stays poor
- Power of TNCs weakens workers/strengthens capitalism
- Trade unions are realising they need to cooperate and provide a voice for workers
- Presence of TNCs intensifies dependence
- Costs of TNCs
- Exploitation of workers
- Conditions/pay may be low
- Sometimes employ children
- Not allowing trade unions
- Making overtime compulsory
- Exploitation of the environment
- Using up renewable sources
- Damaging ecosystems
- Creating pollution
- Exploitation of markets
- Mis-selling of goods
- Dumping of goods
- Selling harmful goods
- Better jobs go to people from developed world
- Profits unlikely to stay in developing country
- TNCs have little loyalty to particular countries
- Will move on if they find cheaper
- Exploitation of workers
- Benefits of TNCs
- Bring investment in terms of money, resources etc.
- Creates jobs where locals cannot
- Need trained workers- raises aspirations
- Provides opportunities for women
- Brings modern values (e.g. equality)
- Need and will pay for infrastructures
- Encourage international trade
- Bring investment in terms of money, resources etc.
- Summary
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