Impact of TNC

Question 1

4 benefits to host

Answer 1

Develop infrastructure
Create industries that wouldn’t exist
Job creation (Nike creates 700,000 jobs)
Introduce new tech to increase productivity

Question 2

4 negatives on host

Answer 2

Leakages of profits, managerial roles given to specialists
Exploitation of labour and gov with low security
Massive capital flows can create instability
Suppresses local economies and discourages enterprise

Question 3

3 benefits on home

Answer 3

Higher profits
Brand given global exposure
Maintenance of highest paying jobs

Question 4

2 disadvantages on host

Answer 4

Structural unemployment

Capital outflow