Transnational/multinational corporations

Advantages
1. More work is created, hence unemployement decreases.
  1. The economy benefits and the country flourishes.
2. Workforce receives a guaranteed income
  1. Workforce feels that they can trust their company and will not strike, hence work will get done.
3. Improvements in roads, airports and surfaces.
  1. Because of these improvements made for the roads, airports transportation is easily facilitated, so goods are easily transported to the places in which they are needed.
4. Improve the levels of education and the technical skills
  1. Because the levels of education and skills are improved, workers become more eligible for jobs, so the unemployment level decreases.
5. Brings foreign currency and welcomes investment
  1. Country makes profit
6. Companies provide : expensive machinery and modern technology
7. Development of mineral wealth and new energy technology
  1. Because this development has occurred more industries are able to use high tech machinery in order to make the levels of production more efficient.
8. Prestige value
  1. The value of the products made increase as they become more prestigious.
9. Widens economic base of country
  1. This means that the economy in the country becomes more developed and it improves due to the fact that the base has been widened immensely.
Disadvantages
1. The numbers that are employed are low compared to the investments put into the companies employing
  1. They are underusing the money spent, so they are losing out on the amount of production which could be made for a certain product.
2. Unskilled workers are employed
  1. This means that the economy in the country becomes more developed and it improves due to the fact that the base has been widened immensely.
3. Profits are normally spent overseas
  1. Because the profits are spent overseas the money will not have been invested in the country and hence the country will lose out on money which could have helped boost their economy.
4. Mechanisation takes over the labour force
  1. This means that more and more people will become unemployed, hence the level of employment will decrease. Sending the countries economy into decline.
5. Money could be spent on better things.
  1. Such as housing, education, hospitals and debts. Which would lead to a better country and a better economy.
6. GDP grows slower
  1. Increasing the difference between developing and developed countries
7. Local workers usually very poorly paid
  1. Local workers may resent the fact that they are poorly paid and may strike or refuse to work. This also means that they will not have enough money or income to buy the products being sold. Hence the companies will not be earning as much money as they need and the country might have problems.
8. Decisions made outside country so firm could pull out any minute
  1. They are underusing the money spent, so they are losing out on the amount of production which could be made for a certain product.
9. Minerals used normally exported not manufactured
  1. energy costs may lead to a national debt

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Transnational/multinational corporations

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	Criado por Barack Obama mais de 10 anos atrás