Transnational corperations

Transnational corperations

1. Advantages

   • Improvements will be made to roads, airports and services due to the intervention of the government
   • Transnational corporations bring work to the country and encourage local labor by making people in the area work in their businesses
   • Corporations can bring investment and provide foreign currencies to the country by restoring business partnerships with other countries
   • This can help to improve the economic base of a country because corperations bring capital if they work properly
   • Transnational corperations can bring improvement to the standards of production and overall health control of a country by getting involved in the wellbeing of the country
   • The local workforce will be guaranteed an income due to the setup of a business
   • Improvements will be made to the education of the people
   • High-tech companies will provide modern technology for the country to make use of
   • There can be an increase in GNP income that leads to an increase in demand of products
   • The prestige value of a corporation can improve the quality of products made by companies
   • Transnational corperations can help lead to the developement of minerals and newfound energy resources

2. Disadvantages

   • Local labour force is poorly paid due to developing corperations which cannot afford to spend a lot on their employees
   • There are not always many local skilled workers that can be employed in the given area
   • Big schemes can increase national debt if no profit is made and they are not succesful
   • Most of the time, decisions are made outside of the country, which means that if the firm decides to pull out many workers will lose their jobs, which will increase unemployment in the area
   • If the transnational corperation does not benefit the country by making any profit, then investments on the government's behalf go to waste, when they could have been invested instead in housing, medical care etc...
   • There are usually less people employed than the investment that is made
   • A lot of the profit will go overseas because the company is transnational
   • The use of mechanisation reduces the size of the labour force required to manufacture a product
   • Much of the time, insufficient attention is paid to the health and protection of the environment of the country by businesses
   • Instead of being manufactured, minerals are usually exported and this costs more and could potentially lead to debt
   • The GNP of a company grows less quickly than the other company's head quarters which could potentially lead to an increase in the difference between developed and currently developping countries