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

Assess the extent to which Trans National Corporations (TNCs) have a positive impact on both developed and developing countries. (15 marks)

Extracts from this document...

Introduction

Assess the extent to which TNC's have a positive impact on both developed and developing countries. (15 marks) As we know the movement of globalization is very important in today's way of life. It affects many different aspects, including culture, economy, and environment also some demographic, political and technological issues. It helps to promote connection, remove barriers and most of all encourage global movement. Globalization creates a greater exchange of ideas, resulting in more knowledge gained about other cultures, also new trade opportunities, of products which were not available in the past. Trans National Corporations (TNC's) are companies which operate in more than one country. The largest firms have branch plants in many different countries. An example of a TNC is McDonalds; it has nearly 30,000 restaurants in 119 countries. Trans National Corporations grow and develop by buying foreign firms, expansion (popularity) and by broadening their product range. As TNC's operate worldwide they affect many different people in every stage of their function. The social side of the effects creates by the function of TNC's is great, as the companies are making money, there are many other factors which are also affected. ...read more.

Middle

Linked with this is that TNC's help to develop mineral wealth in countries that might not otherwise be able to capitalise on local resources, this could be diamonds in Africa, more money will be made by selling the product abroad, as it is not something commonly sold. For the large amount of workers in LEDC's working for TNC's, wages are not as high as they would be in the country of TNC origin, however they are much higher than any local rates. This is a large benefit to the economy as people will have more money, can pay more money for taxes; this also links with the multiplier affect. More local businesses being set up this also results in more money being fed into the economy. Due to the increase in jobs in developing countries, workers are taught new skills which mean more jobs can be fulfilled. This brings capital, modern technology and skills which the country does not have. New local businesses can be set up, providing the economy with more money; also these new skills can be used to improve the standard of living of many people. ...read more.

Conclusion

Another important point benefiting the economy of the MEDC, is that in the developing country there is often cheap land as the area is declining in local businesses, so governments want to persuade TNC's to invest in the country, to boost their own economy. To conclude, it is clear that TNC's have very strong positive effects on both developing (LEDC) and developed countries (MEDC). The benefits of the MEDC's are largely based on the investment they place in the LEDC, and how little is required to run a business in a developing country, due to cheap labour and the governments offering low taxes etc, simply to get the business to use their country. The benefits of the developed countries I would say would be seen as 'sly', they benefit largely when others benefit a little in comparison. The positive effects on the developing countries, is that overall they receive a much needed economy boost, a cycle is created where people receive more money, then more businesses can be set up. Benefits created by TNC are different on both LEDC and MEDC countries, developed countries positive effects are largely focussed on income, money and success rate. However that of the developing countries is in a basic way of description, based on improving the standard of living and quality of life of its people. ...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)

    their drugs are manufactured in factories that are located within LEDCs as they are often far cheaper than producing drugs in MEDCs as wage regulations are much stricter and land is much more expensive. Pharmaceutical companies want to manufacture as much product as they can to maximise profit and so,

  2. tourism impact

    which will bring more tourists to the bay and people living in the bay happier. Tourism also creates jobs in Torquay such as in the hotels, restaurants and souvenir shops. On the other hand there are a few negative Impacts such as that there are many hidden costs to tourism, which can have negative effects on the host community.

  1. Development of the leisure and recreation industry

    There are many other designated areas of the countryside that provide recreational opportunities, these include areas of outstanding beauty and heritage coasts such as the following: * Kent Downs * Norfolk Coast * Cleveland Way * Giants Causeway * Viking Trails * Stonehenge All of these are listed destinations so they cannot be changed.

  2. Poverty in Africa, the widespread effects of poverty in Africa have had substantial effects ...

    Most African nations are now pushing for debt relief. Despite Africa being extremely wealthy with natural resources it still remains the poorest continent by far. There are many solutions to ending the poverty trap in Africa but they are not going to be easy. Africa is clearly suffering from a governance crisis.

  1. Free essay

    Transnational corporations. There are two types of TNCs that affect health globally in very ...

    With growing numbers of children smoking in these countries, WHO (the World Health Organisation) drew up the Framework Convention on tobacco control in 2003 in order to protect public health by restricting the advertisement of tobacco and regulating the contents of the products.

  2. Investigation. Hypothesis: Students from developing countries tend to associate the responsibility of global ...

    all thoughts and ideas were represented and make the experiment as accurate as possible. 4. The results and observations were collated in order to understand whether students from developing countries feel that developed countries are responsible and whether students from developed countries differ in their opinion.

  1. Outline and suggest reasons for the issues facing countries at very low levels of ...

    This would require training and long term efforts from large numbers of western developed countries, a hard task to achieve. Huge amounts of aid have been donated; in last 50 years alone over 2 trillion dollars in aids were donated to Africa.

  2. Newly industrialised countries have been, and continue to be, the driving force of globalisation. ...

    In order to obtain this goal, the government set up a plan called ?The Great Leap Forward? in 1949. This plan meant that those working in agricultural services had to then work in manufacturing. The lack of agricultural producers coupled with a growing population however meant that a famine wiped out the lives of over thirty million people.

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