TNCs: Advantages and Disadvantages
A mindmap showing the benefits and costs to a host country (usually LEDC) from TNCs
- Created by: Tilly
- Created on: 14-01-13 17:25
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- TNCs: Advantages and Disadvantages to HOST country
- Brings work to country, uses local labour
- Increase in GNP and personal income
- More demand for products = growth of services and products
- Prestige Value
- Widens industrial variety (ie not just agriculture)
- INWARD investment & foreign currency to country
- Improvement in infrastructure
- Improves education and skills of local people
- Decisions made outside of country; firm could pull out at any time
- Insufficient attention to H&S regulation and protection of environment
- GNP growth slower than in Home country
- Widening gap between developed and developing countries
- Big schemes can increase national debt (ie by investing too much)
- Very few skilled local people employed
- Most profits go overseas
- Local labour force usually poorly paid and have to work long hours
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