Asked by: Yuneisy Inzaghi
business and finance environmental services industry

Do TNCs only bring advantages to the host country?

32
Overall I disagree with the statement as TNCs do not "only bring disadvantages to their host country". TNCs bring financial advantages to host countries such as improving employment rates and funding development programmes aimed to boost aspects such as education and infrastructure.


Similarly, it is asked, how do TNCs benefit developing countries?

Advantages of TNCs locating in a country include: creation of jobs. stable income and more reliable than farming. improved education and skills.

Additionally, why do TNCs operate in different countries? Due to TNCs are able to coordinate and control operations of activities in different countries, hence, they allocate some of their offices and factories in developing countries and take this advantage to distribute their production around the countries.

Also know, what are the positive and negative impacts of TNCs?

Inward investment by TNCs can have a significant effect on social and economic developments within a country at both national and regional scale. Environmental impacts may also arise due to globalisation and TNC's exploitation. Some countries can gain a number of positive impacts due to the location of TNC branches.

What are the disadvantages of TNCs?

Disadvantages of TNCs locating in a country include:

  • fewer workers employed, considering the scale of investment.
  • poorer working conditions in some cases.
  • damage to the environment by ignoring local laws.
  • profits going to companies overseas rather than locals.
  • little reinvestment in the local area.

Related Question Answers

Prudenciana Papendorf

Professional

Is Apple a TNC?

A transnational corporation is any company that operates in more than one country at a time. Apple is one of the many examples of TNC's (transnational corporations), In fact, it is one of the most successful in the world. It is a technology based company, best known by its creation of the "IPhone".

Angelina Albiz

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Is Coca Cola a TNC?

Most Coca-Cola products are produced outside of North America. Like many other transnational corporations, Coca-Cola takes advantage of low worker wages in developing countries. Most of the products produced are exported out of the country to where the sales are to be made, North America, Europe, and Asia.

Zaim Povoas

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Is Amazon a TNC?

Amazon.com is a multinational ecommerce company. Amazon.com is a multinational Ecommerce company, which was founded by Jeff Bezos who is considered to be one of the world's top innovative executives. The role of information system in this company is a leading role, because the company is an online retailer.

Adolfina Varki

Explainer

What is the role of TNCs?

(40 marks) Transnational Corporations (TNC's) play a large role in the development of the global economy, through the sharing of research, trade and technological advances between the different countries.

Anass Hinchado

Explainer

What is a TNCs?

Transnational corporations
When a foreign company invests in a country, perhaps by building a factory or a shop, this is called inward investment. Companies that operate in several countries are called multinational corporations (MNCs) or transnational corporations (TNCs).

Guoxing Zuckschwerdt

Explainer

Is Nike a TNC?

Nike is a transnational corporation. You should be able to mark its headquarters and areas of sales and manufacture on a blank world map. Headquarters - Oregon (USA). Sales - Nike shops are located mainly in southern and western Europe, also Asia and North America (very few in South America or Africa).

Aima Villellas

Pundit

What is a TNC and examples?

A transnational corporation (TNC) is a huge company that does business in several countries. Such companies can provide work and enrich a country's economy - or some say they can exploit the workers with low pay and destroy the environment. Examples of TNCs include: Nestlé

Maikol Katzepov

Pundit

What is the biggest TNC?

Today, it's technology companies, with US computer company Apple in the number one spot.
  • Amazon.
  • Exxon Mobil.
  • No of employees: 73,500. The world's largest oil and gas company has dropped from number one last year to number five.
  • Berkshire Hathaway.
  • Microsoft.
  • Alphabet.
  • Apple.
  • Is bigger better?

Rosana Radzik

Pundit

Is globalization positive or negative?

Some argue that globalization is a positive development as it will give rise to new industries and more jobs in developing countries. Others say globalization is negative in that it will force poorer countries of the world to do whatever the big developed countries tell them to do.

Seryozha Skrodzki

Pundit

What is positive impact globalization?

Globalization has brought benefits in developed countries as well as negative effects. The positive effects include a number of factors which are education, trade, technology, competition, investments and capital flows, employment, culture and organization structure.

Marquis Harybin

Pundit

What are negative impacts of development?

Environmental concerns:
Fast growth can create negative externalities e.g. noise pollution and lower air quality arising from air pollution and road congestion. Increased consumption of de-merit goods which damage social welfare.

Adaline Saillard

Teacher

Why is globalization bad?

The bad side of globalization is all about the new risks and uncertainties brought about by the high degree of integration of domestic and local markets, intensification of competition, high degree of imitation, price and profit swings, and business and product destruction.

Sohora Rosch

Teacher

What are the negatives of Globalisation?

Negative Effects of Globalization. It has had a few adverse effects on developed countries. Some adverse consequences of globalization include terrorism, job insecurity, currency fluctuation, and price instability.

Aurelia Loukili

Teacher

How do TNCs contribute to economic growth?

TNCs do increase income: they introduce capital and technology, and also create structures for the efficient organisation of commerce. Technology transfer is a particularly important benefit. TNCs make a number of positive contributions.

Xiao Raghuram

Teacher

Who does globalization benefit?

While in the average developing economy the poor as well as the wealthy benefit from globalization, in many advanced economies globalization often has little effect on the incomes of the poor. But government policies matter in making the benefits of globalization more inclusive.

Maudie Schindler

Reviewer

How does globalization affect the economy?

While globalization has radically increased incomes and economic growth in developing countries and lowered consumer prices in developed countries, it also changes the power balance between developing and developed countries and affects the culture of each affected country.

Cyrstal Quintal

Reviewer

How does Globalisation affect culture?

Cultural globalization refers to the transmission of ideas, meanings, and values around the world in such a way as to extend and intensify social relations. This process is marked by the common consumption of cultures that have been diffused by the Internet, popular culture media, and international travel.

Erlinda Ruschenschmidt

Reviewer

Why is Globalisation increasing?

Globalization has grown due to advances in transportation and communication technology. With the increased global interactions comes the growth of international trade, ideas, and culture. Globalization is primarily an economic process of interaction and integration that's associated with social and cultural aspects.

Neal Locasi

Reviewer

What does TNC stand for in business?

Transportation Network Companies

Co-Authored By:

EveryThingWhat Staff Editor

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23rd June, 2020

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