Nigeria case study - TNC's

  • Created by: 15j.price
  • Created on: 28-02-19 20:44
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  • THE ROLE OF TNC'S
    • A TNC usually has a headquarters in one country with production plants in several others
    • TNC (transnational corporation) – a large company that operates in several countries 
    • advantages of TNC's
      • Investment in local education
      • Investment in local infrastructure
      • Other local companies benefit due to increased orders
      • Companies can also help grow new skills
      • Valuable export revenues are earnt
      • Companies provide employment
    • Disadvantage of TNC's
      • Management jobs often go to foreign employees instead of the locals
      • Working conditions are sometimes very poor and bad quality
      • A larger amount of the profit produced goes abroad
      • Local workers are sometimes poorly paid
    • Unilever in Nigeria
      • Unilever has helped promote water supply, education and health care
      •  In Nigeria, Unilever has employed about 1500 locals
      • Unilever is an Anglo-Dutch TNC that produces soap, foods and personal care items
    • Shell Oil in the Niger Delta
      • Shell is one of the largest oil companies, however it has had some controversy 
      • Advantages of Shell Oil
        • 250 000 jobs have become available in related industries
        • 65 000 Nigerians have had direct employment
        • 91% of all shell contracts are from Nigeria
        • It has made major contributions in taxes
      • Disadvantage of Shell oil
        • Oil spills have caused water pollution and soil degradation. This has damaged agriculture and fishing industries
        • TNCs and the government have had to pay billions of dollars every year due to oil theft and sabotage
        • Toxic fumes are sent into the air due to frequent oil flares

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