Discuss How One or More Transnational Companies Affects the Development of One Country You Have Studied
- Created by: not a goth
- Created on: 21-05-17 18:36
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- Discuss How One or More Transnational Companies Affects the Development of One Country You Have Studied
- Social
- Positives
- hires independent auditors to check meeting standards
- 30,000 employees trained yearly-ICT skills/literacy
- increased income = increased quality of life
- Negatives
- weak legal structure = hard to sue Nike for human rights abuses/enforce regulation
- lack of training and education of employees
- Violations of labour code
- toxic substances cause respiratory illnesses
- Tae Kwang Vina employs 10,000 rural women- vulnerable
- majority < 25 and earned job through sexual favours
- corporal punishment
- 100 workers standing in midday sun for 30mins for spilt juice
- women hit for poor sewing
- 60% factories met standards
- hires independent auditors to check meeting standards
- Positives
- Economic
- Positives
- significant to economy (creates jobs)
- Directly employs 25,000 and 650,000 indirect jobs
- 10,000 women are employed in Tae Kwang Vina
- pays $2.28/day whereas national average $1/day
- 2000: workers earned 5* minimum wage
- 1994: average wage $37/month where min. $45/month
- 2000: workers earned 5* minimum wage
- significant to economy (creates jobs)
- micro-loans to locals to set up businesses
- Negatives
- Clustering in capitalist south = honeypotting
- land use limitations = not everywhere has FDI & future energy concerns
- lack of job security bc easily sacked
- 2009: $1.4bn net income-how?
- 1994: average wage $37/month where min. $45/month
- people stop buying = decrease in demand = drop in production = workers sacked
- out-competes local businesses
- Positives
- (Nike in Vietnam)
- FDI hotpoint: attracted $10-12bn/year in last 20 years
- geographic location close to global trade links - Pacific and TTP
- Diversifying manufacturing towards capitalism
- Came to Vietnam in 1995
- Political
- Positives
- Creates trade links and growth in world economy
- 2007: WWF commended for reducing CO2 emissions 13% below 1998
- access to new markets and resources
- creates infrastructure- increases trade
- Negatives
- Only clustering in Capitalist regions
- Loss of political sovreignity bc TNCs have more power
- weak environmental/human rights laws
- weak legal structure = hard to enforce
- Positives
- Social
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