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Slide 1

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Transnational Corporations…read more

Slide 2

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What are TNC's
52/100 of the largest economies on the World are
corporations, 48 are countries.
This means they have lots of money and therefore power and
Positive Negative
Provide FDI- investment for development Brainbrain
Employment for local people Decisions are made outside the country
and a firm could pull out at anytime
Can open up markets + give better access Local business can become dependent on
to global markets TNC's…read more

Slide 3

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BAT - (Bat American Tobacco) In Malawi
Tobacco account for 60% of
Malawi's exports
People employed by FDI:
Inwards flows of $3million
1990- 7,000
Investment fluctuates:
1995- 10,000
1980- $9.5 mill
2033- 4,300
1991- $28 mill
2005- $3.0 mill…read more

Slide 4

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BAT - (Bat American Tobacco) In Malawi
5th largest producer of Tobacco (generates foreign income)
60% of exports Burley leaf (high quality, high cost)
Growing Tobacco instead of corn- cash crop not food
Child labour- not at school (especially during 4 month harvest)
Green leaf disease- absorption of nicotine through skin- children,
pregnant women and women nursing babies.
Low value economically- farmers and landowners employ landless
Prices set at market by buyers- BAT, phillip Morris and Japan Tobacco…read more

Slide 5

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BAT - (Bat American Tobacco) In Malawi
Positives Negatives
Provides of the country's income 75% of people dependent on tobacco
Provides employment 1.7 mill directly Child labour (although illegal) leads to intergenerational
5 million indirectly poverty
Women with jobs, paves the way to women's rights Tobacco poisoning = deaths
`Charitable offerings' from TNC's provide clean water and Grow tobacco not food- leads to shortages
health care (40,000)
Farmers can make 8x more growing Tobacco low income- needs loans, high interest and can't be repaid
2014 GDP increase 5.7% (driven by agriculture) Acts as propaganda and gets people and children into
In some places more than ½ of children smoke…read more


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