MNCs

Question 1

why do MNCs choose LEDCs/NICs

Answer 1

• cheaper labour
• access to raw materials
• workers can work longer hours-more products made and more money
• less rules/laws for workers
• cheaper land

Question 2

advantages for the hosts

Answer 2

• encourages more investors to invest in their country
• Government gets a tax from the workers-can spend on improving the country e.g. infrastructure, health, education
• transfer of technology-educated

Question 3

disadvantages for the hosts

Answer 3

• The workers are exploited
• Jobs aren’t secure as the MNC can easily relocate
• Industry can effect the environment-pollution, greenhouse gases, transportation, deforestation, polluting water sources through waste
• often the profit goes outside the country
• don’t follow environmental laws
• working conditions can be dangerous for the workers