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Flashcards in G - TNC's Deck (8)
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1
Q

What does TNC stand for?

A

Transnational corporations

2
Q

What are TNC’s?

A
  • Large, wealthy organisations

- Headquarters in one country (usually richer areas) and branches spread across the world

3
Q

Why would production occur in poorer areas?

A
  • Labour costs are lower

- Laws are more lenient

4
Q

Why would production occur in richer areas?

A

There are usually skilled workers

5
Q

What are advantages of TNC’s?

A
  • Provide jobs in factories making supplies or where products are sold
  • Multiplier effect
  • Workers are trained leading to the development of skills
  • Infrastructure and communications improve
6
Q

What is the multiplier effect?

A

Where initial investment and jobs lead to knock-on-effect, creating more jobs and providing money to generate services.

7
Q

What are disadvantages of TNC’s?

A
  • Leakage
  • Wages are low
  • Key jobs go to outsiders
  • The branch could be closed if there are problems worldwide or in the company
  • Working conditions can be poor
  • Labour force is expected to work long hours
  • Health and safety and pollution can become a problem
8
Q

What is leakage?

A

Where profits made by the company are taken out of the country to the country of origin and so do not benefit the host country