unequal flows of money

Question 1

what are benefits of unequal flows of money?

Answer 1

fdi to the receiving country improves quality of life

aid and remittances improves quality of life as they can rebuild after a disaster

richer countries can take advantage of lower labour costs maximising their profits

Question 2

whats an example of when aid was deployed after a natural disaster? where was majority of this invested?

Answer 2

$11.28 million in foreign aid was given to fiji after cyclone winston in 2016

a majority of this was invested into the help for homes scheme

Question 3

what are the problems with unequal flows of money?

Answer 3

injustice to people in low income countries

dependency

sweatshops have dangerous working conditions and low wages and are set up by large companies

can reduce incentive for governments to help their own countries

Companies can pressure governments to alleviate taxes or relax social and
environmental laws so that TNCs will invest

TNCs have been criticised for profiting too much. The flows of money may be larger to low income countries, but the amount of profit that stays in the country is very small. large repatriation of profits

Question 4

whats an example of sweatshop?

Answer 4

Rana Plaza - in 2013, killed 1134 people

provides clothes for primark matalan and walmart