Impacts of TNCs

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  • Impacts of TNC's
    • HOST
      • Positive
        • Economic
          • FDI increases growth, infrastructure, stimulate enterprise= NIC
          • Employment
        • Social
          • indigenous staff may leave TNC to set up business them selves as they are trained by TNC
            • Daewoo
          • Skill level of locals increases= raising standards of living and improve heath
          • Huge number of relatively well paid jobs-- usually aboe local rate
          • increase opportunity to self-develop global travel and tourism
        • Environmental
          • Lead to global awareness
          • increase technological advancement
      • Negative
        • Economic
          • Exploitation of locals
          • Local firms might lose out
          • TNCs surpress loal economies
          • Profits go back to home country
        • Social
          • lose some ability to self govern
          • spread of new technological processes and skills from TNC maybe very limited
            • prevents host developing own ideas and knwoledge
          • if government heavily dependent maybe tempted to relax safety laws
          • Lack of job security
        • Environmental
          • relaxation of environmental laws
          • increase infrastructure= loss of biodiversity
    • HOME
      • Negative
        • Economic
          • Employment loss in primary/secondary sector
          • Decrease in manufacturing= economy more vulnerable to global economic crisis
        • Social
          • Home unemployment
            • mainly women due to production line jobs which moved abroad
          • Loss of national identity
          • hold responsibility for conditions
        • Environmental
          • Increased amount of travel needed to go between countries

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