Multinational Companies (MNCs)


	Multinational Companies (MNCs)
	Advantages They create jobs with the wages often being higher than the local companies and more reliable When they are located in LEDCs they create skilled jobs and this triggers more education and training in that area MNCs spend money on infrastructure and services and pay taxes that are used to develop the economy and country The amount of disposable income that people have increases, stimulating the growth of the economy Local companies that supply MNCs increase their income	Disadvantages The jobs that are created are not always secure - the MNC could relocate at any time Employees in LEDCs may have to work long hours in poor working conditions Employees in LEDCs may be paid lower wages than employees in MEDCs Profits often go back to the country the MNC is based in Local companies may struggle to compete or find workers so are forced to shut down Countries can become over-reliant on MNCs which can lead to government decisions being influenced Large sites attract large amounts of traffic, which increases air and noise pollution in the area Manufacturing employment has fallen in MEDCs. This is called deindustrialisation and has caused major economic and social problems in traditional industrial regions, such as the steelworks of south Wales
	Evaluation

They create jobs with the wages often being higher than the local companies and more reliable
When they are located in LEDCs they create skilled jobs and this triggers more education and training in that area
MNCs spend money on infrastructure and services and pay taxes that are used to develop the economy and country
The amount of disposable income that people have increases, stimulating the growth of the economy
Local companies that supply MNCs increase their income

The jobs that are created are not always secure - the MNC could relocate at any time
Employees in LEDCs may have to work long hours in poor working conditions
Employees in LEDCs may be paid lower wages than employees in MEDCs
Profits often go back to the country the MNC is based in
Local companies may struggle to compete or find workers so are forced to shut down
Countries can become over-reliant on MNCs which can lead to government decisions being influenced
Large sites attract large amounts of traffic, which increases air and noise pollution in the area
Manufacturing employment has fallen in MEDCs. This is called deindustrialisation and has caused major economic and social problems in traditional industrial regions, such as the steelworks of south Wales

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