Trans-National Corporations Flashcards
1
Q
TNCs
A
Trans-national corporations. Companies located in or produce and sell products in more than one country.
2
Q
TNCs factories are usually located…
A
in poorer countries because labour is cheaper and there are fewer environmental and labour regulations. Which means they make more profit.
3
Q
They can improve…
A
the development of a country, providing jobs and investing in communities which reduces the development gap.
4
Q
Advantages of TNCs
A
- create jobs in poor countries
- employees can get more reliable income
- TNCs spend money to improve local infrastructure
- new technology is brought to poor countries
5
Q
Disadvantages of TNCs
A
- employees in poorer countries may be paid lower wages than employees in richer countries
- employees may work for longer hours
- worse working conditions
- most money is not invested in the local country
- jobs created are not secure, there is a chance of relocation
