• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

'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

Extracts from this document...


'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.


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.


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.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Global Interdependence & Economic Transition section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Global Interdependence & Economic Transition essays

  1. Marked by a teacher

    Referring to both pharmaceutical and tobacco companies, explain how transnational corporations can influence the ...

    5 star(s)

    In comparison to salaries in MEDCs, the workers in LEDCs are paid far less, but it is much more than many people would have been able to earn before their jobs in the factories, as many of these LEDCs rely heavily on agriculture which is often a very low-paid form of employment.

  2. Assess the extent to which Trans National Corporations (TNCs) have a positive impact ...

    bridges, this means that TNC's are able, with the use of developing country work forces, to produce products that couldn't be made in the past. This can improve standard of living and quality of life of the people living in developing countries.

  1. The Impact of Transnational Corporations on Less Economically Developed Countries

    The employees will benefit from these skills, because they would be able to use them in other aspects of their lives. The TNC will supply the expensive machinery used in manufacturing for the employees, which may also introduce new technologies as well.

  2. Tourism in LEDC's creates environmental and social problems whilst bringing limited economic benefits. How ...

    Often LEDC's do not have well developed legal and regulatory infrastructure so building regulation and planning laws are less stringent. Western companies and even native companies will exploit the country environmentally, constructing buildings in picturesque, sensitive and vulnerable environments. For example, in the Maldives, an archipelago in the Indian Ocean,

  1. The Growth of Dubai

    Al-Fahidi Fort in Dubai (1951). Dubai Museum now. Graph Showing Population from 1900-2000 - see attached graph Pattern of Growth and Reasons International trade was the basis of Dubai's prosperity. This gave the city an early start in development before the beginning of oil production in the 1960s.

  2. Can developing countries ever catch up with developed countries

    strapped countries could pay their export bills."28 Compound interest rates, poor exchange rates and unfair trade practices mean that indebted countries are unable to repay this debt. As Strange points out, "aware of the mounting difficulties of third world debtor countries, banks did not stop lending.

  1. Consider the Defining Features of Dependency Theory and distinguish its Major Variants. Discuss the ...

    "Dependence is a conditioning situation in which the economies of one group of countries are conditioned by the development and expansion of others. A relationship of interdependence between two or more economies or between such economies and the world trading system, becomes a dependent relationship when some countries can expand

  2. The use of trade is the most important tool to achieve economic growth in ...

    And finally, they believe that trade only benefits the wealthy members of society and that the wealth doesn't 'trickle down' to the majority of the population, resulting in the gap between rich and poor widening. Whilst trade must be promoted in LDCs, it is just as, if not more important, to preach free trade and fair trade in developed countries.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work