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Flashcards in Trans-National Corporations Deck (5)
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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