Transnational corporation

Transnational corporation

1. Advantages

   • Brings work to the country and uses local labour
     • favouring the work in a country by using local labour
   • Local workforce receives a guaranteed income
     • people are sure to receive money
   • Improves the levels of education and technical skill of the poeple
     • increase education and work skill of the local people
   • Brings welcome investment and foreign currency to the contry
     • ask investments of foreign companies
   • Companies provide expensive machinery and modern technnology
     • these companies bring new technologies and machines to the country
   • Increased gross national product/personal income can lead to an increased demand for consumer goods and the growth of new industries.
     • huge increase the national income to increase a consumer demand for the growth of the new industries
   • leads to the development of mineral wealth wealth and new energy resources
     • utilisation of the mineral wealth and new energy ressources
   • Improvements in roads, airports and services
   • Prestige value
     • the economy of the country is enlarging
   • Widens economic base of country
   • Some improvement in standards of production, health control, and recently in environmental control
     • more roads, airports and services are build
     • the control of the health and the environment is improving

2. Disadvantages

   • Numbers employed small in comparison with amount of investment
     • they are less employed in comparaison of the investments
   • Local Labour force usually poorly paid
     • the local work is not well paid
   • Very few local skilled workers employed
     • employees do not have good skills
   • Mechanisation reduces the size of the labour force
   • GNP grows less quickly than that of the parent company's headquarters, widening the gap between developed countries and developing countries
     • developing countries are not developing themselves as fast as they should
   • Money possibly better spent on improving housing, diet and sanitation
     • the money is not well employed. It should go to house
   • Big schemes can increase nation dept
   • Dcisions are made outside the country, and the firm could pull out at any time
   • Insufficient attention to safety and health factors and the protection of the enviroment