Dell Case Study

  • Host Country Benefits
  • contributes to fall in poverty- manufacturing plant in Malaysia will raise standard of living
  • enables area to become more connected to global economy- Lodz, Poland is connected to USA and suppliers
  • contribute to development of infrastructure and communication- BT outsource to India provide telephone access
  • suppliers companies may grow, cumulative causation
  • TNCs generate more profit so pay more tax

Host Country Negatives

  • Environmental impacts- Smog in Bejing and Shanghi, river pollution
  • Insecure employment-footloose industries
  • Health and Safety ignored - 60% of garment factories in Bangladesh are unsafe
  • Profits go to HQ countries - Dells HQ in Texas
  • TNCs out compete local companies- Dell in Limerick half high street shut
  • workers are low paid and exploited- 30p an hour

Source Country Benefits

  • Dirty industries and pollution are exported eg no London smog

Source country costs

  • derelict land due to factory closes- deindustrialisation
  • insecure employment as move elsewhere -footloose industries eg North Carolina to Asia
  • loss of jobs because of global shift
  • high costs of regenerating an area

Dell HQ located in texas

North Carolins plant recieved $280 million in incentives


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