4.4.1The impact on MNCs

Question 1

What are 5 pros of MNCs?

Answer 1

• creates employment
• increased skill base
• increase standard of living as more taxes paid
  -raises country’s profile
  -improves infrastructure

Question 2

What are 4 cons of MNCs?

Answer 2

• low paid jobs
• MNCs pull out quick
• poor safety record
  -widen poverty gap as living costs increase

Question 3

What are the impacts of MNCs on local economy?

Answer 3

-generates employment
-provides work for business suppliers
-boosts local economy

Question 4

What are the impacts on MNCs on local businesses?

Answer 4

-increase need for raw materials
-workers of MNCs buy stuff from local shops
-MNCs may take workers away from local businesses

Question 5

What are the impacts of MNCs on local community?

Answer 5

-lead to improvement of infrastructure
-contributes to local government taxes

Question 6

What are the impacts of MNCs on national economy?

Answer 6

-generates income, employment, wealth
-scale of investment is likely to be high