Discuss How One or More Transnational Companies Affects the Development of One Country You Have Studied

View mindmap
  • 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
    • 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
          • 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
    • (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

Comments

No comments have yet been made

Similar World Development resources:

See all World Development resources »See all Theme 4: Key Idea 3 resources »