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'The growth of transnational corporations has had a major impact on a number of countries around the world 'Discuss this statement with reference to MEDCs, LEDCs and NICs

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Introduction

'The growth of transnational corporations has had a major impact on a number of countries around the world' Discuss this statement with reference to MEDCs, LEDCs and NICs A TNC is a company that operates in no less than two countries. An example of this is Nokia a mobile phone company who are based in Finland but also have manufacturing plants in Hungary and Bulgaria. The also make some handsets in Mexico. TNCs have increased rapidly over the last 30 years or so; this may be due to a number of reasons. Governments in NIC (newly industrialized countries) have tried to lure TNC to their countries. One way they have done this is by keeping the land prices artificially low; this is so the TNC can build factories and other building for less money. They also have a relaxed attitude to environmental laws so the TNCs do not have to pay out for expensive treatments for their waste so it complies with strict laws like the ones they have in the US, UK and Japan. ...read more.

Middle

new country and also to keep that branch of the business running if you can get people from HQ to go to the base in the NIC and help set-up systems or sort out any problems which they are having. Most of the 'mother' countries of TNCS are MEDCS such as USA, Japan and Western European nations and they tend to locate in the 'Asian tigers' (countries such as Vietnam Thailand and s. Korea) the presence on TNCs in these countries has had a positive effect on the NICs and its population. The most workers are paid the same as professional workers in those countries (in Vietnam the workers in one of the factories Nike sub-contracts to are paid the same as the teachers.) this shows that compared to MEDC standards they are paid much less but for their home nation they receive much more than they would have made if they had stayed in their jobs they had before the factories came (most would have been farm workers or in other primary employment. ...read more.

Conclusion

However due to the lack of environmental law and regulations the government cannot do anything about it. On the other hand many people including employees are supporters of TNCs because they have improved the life of many people in a lot of countries who other wise would have had to scrape out an existence in rice fields of in locally run factories with worse conditions and poorer pay than they would receive in factories connected with TNCs. In this essay I have tried to show the good and bad sides of TNC and also reasons for why their number have increased so rapidly. In conclusion I feel that TNCs are a mixed blessing to NICs. Its is good for them socially and economically however from an environmental view allowing TNC into a country is a big mistake unless the government tighten laws on treatment of waste etc which I feel they would not do because they would loose soe of the attraction they have to TNCs if they did. ...read more.

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