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Description
Flashcards by Adam Collinge, updated more than 1 year ago
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Created by Adam Collinge
about 10 years ago
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| Question | Answer |
| What are TNC's? | Companies that produce products, sell products or are located in more than one country |
| How do TNC's increase globalisation? | By linking together countries thorough the production and sale of goods |
| What else can TNC's do to other countries? | Introduce new cultures, e.g McDonald's introduces Western food in the East |
| Give another name for TNC's | Multinational companies (MNC's) |
| What is the multiplier effect? | The cycle of more jobs, which leads to an increase in services, which leads to more jobs |
| How do TNC's effect economic development? | TNC's create jobs in the area which increases the wealth of the area (taxes) and the wealth of the local people. The taxes are used to improve infrastructure and services and people have more money to spend. This attracts new TNC's to the area creating more jobs |
| Why do TNC's look for cheap labour? | Because they get more profit |
| Why are TNC HQ's and resurch centers usually in MEDC's? | Because more people are skilled and educated in those areas |
| Give six advantages for TNC's | 1) They create jobs in all the countries they're in 2) Employees in LEDC's get a reliable income 3) When in poorer countries, they create skilled jobs 4) They spend money to improve the local infrastructure 5) New tech and skills are brought to LEDC's 6) Local companies supply them, increasing their income |
| Give six disadvantages for TNC's | 1) LEDC workers may be paid less 2) LEDC workers may have to work longer 3) Most TNC's come from rich countries so the profits go back there 4) Large sites will increase pollution 5) LEDC jobs created by TNC's aren't secure- The TNC could relocate 6) Local companies may struggle to find business |
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