4.4 Impact On MNCs- Local Economy Flashcards
1
Q
+Creates employment
A
Reduces number of people willing to use government benefit system.
Depends on the size of the firm- how many jobs it will create
2
Q
+ Increasing skill base
A
Train local workforce to develop skills
Develop knowledge and expertise
Degree of training will vary
Other MNCs will take advantage
3
Q
+ Improves infrastructure
A
Improves things such as roads or communication systems
Could be the business or council that fund this
4
Q
- Low paid jobs
A
Mainly jobs for the local people are low paid and managerial jobs are taken by the wealthy people
5
Q
- pull out quickly
A
In time of recession or low sales the MNC may pull out of a country
Lead to high unemployment
6
Q
- poor safety records
A
Government are willing to turn a blind eye to firms breaking the law
