effect on host country

Question 1

job creation (positive)

Answer 1

• multinationals directly employ thousands of people
• jobs are created in the local area as workers in the company spend their wages in shops etc

Question 2

technology transfer (positive)

Answer 2

MNCs may bring knowledge of new production techniques, which will gradually spread through local businesses in the host country

Question 3

jobs (negative)

Answer 3

• using cheap labour by paying workers very low wages compared to workers in developed countries
  > making people work unhealthily long hours
• using child labour

Question 4

Government (negative)

Answer 4

• pressuring governments by threatening job losses
  > bribing politicians or other influential businesses

Question 5

environment (negative)

Answer 5

dumping waste/chemicals in ways that are toxic or create pollution due to a lack of regulation

Question 6

health and safety (negative)

Answer 6

• failing to devise or implement health and safety policies in some countries as the law does not require it

Question 7

improves choice for customers (positive)

Answer 7

• introduction of new MNCs to countries often results in a greater choice of goods and services within the country
• establishment of new business will also increase competition and may start a price war as the market vies for attention of customers