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Advantages
- Provides
inward investment and creates jobs for locals
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- Increases incomes and standard of living
- May attract related investment
- Develops skill levels
- Multiplier effect
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Disadvantages
- Exploitation
of workforce
- Environmental
pollution e.g. Nike burning rubber which LEDCs tolerate to attract investment
- Lack of
control- key decisions made overseas
- Lack of
security- lower-cost operations attract investment elsewhere
- Low skilled
labour intensive jobs
- Leakage- profits are sent back to the country
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