Inequality Of Unequal Flows Of Money

Question 1

How do LICs get money ?

Answer 1

remittances.
Foreign aid
FDI
Income from trade

Question 2

How does TNCs creating inequality?

Answer 2

Move to poorer counties.
Employ highly skilled workers who get paid more then lower skilled workers.
Bigger divide in economic population.
Also job loss in HIC.

Question 3

How does FDI benefit host and origin country?

Answer 3

Origin - Access raw materials and low labour costs.

Host - capital / rebuild / living standards / rebuild infrastructure

Question 4

What are negative impacts of FDI?

Answer 4

Dependence on FDI force local businesses out.
Conflict.
Farmers evicted for large plantations.
HICs pressurise governments in LICs to pass laws so it is cheaper for them to invest.