going global case studies

Question 1

What are the costs of TNCs for the source country?

Answer 1

• Job losses as company outsources
• Abandoned factories creates derelict land
• OUtsourcing can be unpopular and result in bad media coverage and loss of sales

Question 2

what are the benefits of TNCs for the source country?

Answer 2

• Environmental pollution is transported overseas and is therefore not their problem anymore
• Higher profits and more tax being paid from growth of TNC
• Successful TNC - creates jobs in source country for research and headquarters

Question 3

What are the costs of TNCs for the host country?

Answer 3

• TNCs pay little or no tax to help improve economy
• Host becomes more polluted as environmental laws are weak
• Workers have low wages and long hours which can lead to exploitation, mistreatment and health issues
• TNCs can out compete local suppliers putting them out of business

Question 4

What are the benefits of TNCs for the host country?

Answer 4

• Job creation and consumption of products leads to higher economic wealth
• Falling levels of poverty from increase of employment
• Local supply chains created leading to more jobs and business growth
• TNCs improve infrastructure and communications as they require them to function. - these can benefit the locals