TNCs

Question 1

Investment (pros and cons)

Answer 1

Brings much needed money into the economy but most profits return to the country of origin

Low wages for local workers
Tax incentives for companies to locate in developing countries
They take the profit out of the country

Question 2

Technology (pros and cons)

Answer 2

Helps develop the country by bringing in new technology and knowledge

Unless the company tries to educate the workers, there will be no real benefit.
TNCs worry about sharing too much information

Question 3

Transport (pros and cons)

Answer 3

Helps improve transport links

Only serve direct routes for the company’s needs
O not receive financial help from the multi-nationals

Question 4

Employment (pros and cons)

Answer 4

They create jobs for the locals

Jobs are often highly skilled so the company brings its own people
The technological nature means there aren’t as many jobs as there used to be

Question 5

Growth poles (pros and cons)

Answer 5

TNCs act as growth poles for other companies
They encourage more companies to locate in this country (they show the benefits)

Only few companies find moving to the developing world beneficial
Companies will only move if it makes sense for them

Question 6

Environment/safety (pros and cons)

Answer 6

They bring tech and expertise to reduce harmful pollution and create a safer working environment

Many TNC Ps have poor records on worker safety and pollution (accused of cutting corners in health and safety)

Question 7

Outsourcing

Answer 7

Where a business makes a contract with another company to complete some of its work.
May involve the making of products or providing a service (call centres, India)

Question 8

Offshoring

Answer 8

When a company moves part of its operations to another country (due to labour cuts or economic situation is favourable) e.g. Shell

Question 9

Host country

Answer 9

The country that the company has been moved to and receives the factory/business

Question 10

Country of origin

Answer 10

The country where the business started

Question 11

Glocalisation

Answer 11

When a country adapts its goods and services to appeal to local markets e.g. BMW (RH/LH drive)
(McDonald’s serve less burgers in India because of the large pop of veggie people and more rice burgers are served in china.)