Use a case study of a Transnational Corporation (TNC) to discuss the advantages and disadvantages for a country or countries where the TNC operates

TNCs’, often referred to as MNC (multinational companies) impacts vary greatly depending on the level of wealth of the country it’s affecting. I’ve split the impacts into positive and negative for both MEDCS and LEDCs, and tried to include a variety of case studies you can choose from.

- Lacking Safety

Often big TNCs turn a blind eye for the sake of profits in LEDCs, taking advantage of, or breaking lax laws on safety and environmental laws in the workplace.
Bhopal, India, December 1984 – Union Carbide’s pesticide plant had a catastrophic production failure and released toxic gas into the local town. Worker’s weren’t properly trained to deal with the failure, and were pressured regularly to cut corners to save money. 3,700 people died as a result.

Coke is well known for exploiting India’s water supply, leaving locals with empty wells or contaminated water no longer suitable to drink.

+ New investment

TNCs gain access to a new market, and build roads and other transport services to their factories.

+ Job Creation

In LEDCS TNCs take advantage of the cheap labour and well educated people.

Nike’s infamous sweatshops exploited workers, with shifts lasting up to 13 hours per day and overtime often forced. Pay is often as little as 2 dollars per day. Employees are left with little rights or a way to break out of the cycle.

In MEDCs often well paid jobs are created for well educated graduates TNCs are looking to snap up for research and Development, the higher wage of employees leads to the positive multiplier effect in the area.
Google for example set up their head quarters right next to the local university in California