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MNC's - Notes

• MNC's can affect globalisation
• Taxes are used to improve infrastructure (buildings)
• The multiplier effect is when the increase in jobs leads to more services which then leads to more jobs and that leads to more services.
• MNC factories are often located in LEDC countries this is because the labour is a lot cheaper there.
• Also they can make the workers work overtime which means that more products get to be made and most of the time the factory owners wont pay the workers for working overtime which means that this increases their profit.
• MNC factories help to create employment in countries where they need employment.
• The employment that is made here helps to pay for education of kids.
• This means that more kids are educated and the literacy rate doesn't go down.

There are some negatives...

• 
• The jobs created are not always secure - The MNC could relocate at any time.
• The workers have to work long hours and in poor conditions.
• The workers have low wages
• The large sites will attract lots of traffic which means an increase in pollution in the area.
• The profits earned go back to the MNC.
• Other local companies may struggle to find business or workers which means that they will have to shut down.
• Bildunterschrift: Globalisation involves a lot of countries all linked by trade and investment.

Wal-Mart - Case Study

• Some good things...
• Wal-Mart is the biggest retailer in the world.
• They own more than 8000 stores.
• They employ more than 2 million people.
• They have created a lot of jobs.
• They invest their profits into sustainable development.
• They donate a lot of their money to improve health and environment.
• Local companies and farmers supply goods to Wal-Mart which increases their own business.
• Some bad things...
• The workers that are working in the factories that supply all of their clothing work long hours.
• Not all of Wal-Mart workers are paid the same wage.
• Wal-Mart can cause local shops to shut down.
• The stores are often are very large and out-of-town, which can cause environmental problems.