TNC investment, Geography Flashcards
What is Investment?
Large companies can locate part of their business in other countries. This helps a country to develop as the companies build factories, lay roads and install internet cables.
What is industrial development?
Industrial development is a process of economic and social change that transforms a country from an agricultural society to an industrial one with factories and manufacturing.
How investment increases standard of living
TNCs provide the local people with high-paying jobs and skills that will get them future employment. This money goes back in the economy through taxes and spending.
How investment increases quality of life
TNCs can also develop areas in other countries with services like building transport and electricity cables. These will create an easier and comfortable life for the local people as congestion and bad WiFi can be reduced.
How does industrial development increase standard of living
Factories will provide local people with more permanent employment from big TNCs who can pay larger wages.
How does industrial development increase quality of life
A secure, regular source of income will make local people less worried
An example of where this has been effective
Nigeria
How do foreign companies impact Nigeria’s service sector?
TNCs have taught many Nigerians how to speak English which has boosted their service economy with the growth of telecommunications. This allows more global finance and trade whilst making a balanced economy.
How has industrial development created a stronger home market?
Nigerian industrial companies have close links with each other to mutually benefit
