'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

Authors Avatar
‘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
Join now!
laws like the ones they have in the US, UK and Japan. Another thing that attract TNCs to NICs is the cheap labour cost, weak unions and lack of minimum wage. This means that the TNC can pay workers less, not worry about providing good working conditions. All of these factors greatly benefit TNCs because they can produce their products or components for a fraction of a price that they would have to pay in their country of origin. Another thing that has enabled companies to spread out over the globe is the fact that global communications and travel has ...

This is a preview of the whole essay