MNCs Flashcards
1
Q
Cause serious environmental damage to host countries
A
use their enormous financial CLOUT to bribe officials – carry out illegal activities like deforestation
e. g SHELL – extracts oil in Nigeria
- pollution near deltas. releases harmful gases
Unscrupulous methods of extraction – land becomes derelict – entrenched cycle of poverty
2
Q
SHELL - NIGERIA
A
- in order to attract investors (LDCs will lower their environmental standards)
- MNCs in foreign countries will benefit if governance is good; research shows that the revenue should have benefited Nigeria – but due to poor governance – did not benefit Nigeria)
- 85% of total exports earning does not go to citizens, but back to host country
- Nigeria still has 63% living below poverty line
3
Q
Exploitation of labour
A
Foxconn – workers worked long hours + poor environment
- In 2010, 18 workers tried to commit suicide, some succeeded
4
Q
MNCs have helped reduce poverty rate in by half in the past 20 years
A
Increased jobs, but still cannot keep up with population growth ( UnN rate increased from 18% to 25%
5
Q
Education can be the great equaliser
A
But education is still inaccessible to more than half of the world’s population due to
- lack of funding
- patraical mindset: e.g. Malala Yousafzai was shot in the head for attending school in Pakistan
