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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