What is a TNC? (globalisation)?

Trans National Companies are what used to be called MNCs. They're companies with a presence in more than just their home country. There are pros and cons to TNCs:

On the positive side

•access to employment and the development of new skills.

•the population will have more money to spend in the economy

•this will mean more income for improving infrastructure and services.

•generally quality of life could be improved.

•The company may invest in local infrastructure, or support educational services, so that is has a good supply of workers.

•the status of an area would be raised, this may encourage investment by other big name Multi-Nationals.

•Other local companies would benefit from increased orders associated with the new development.

•Valuable export revenues will be earned.

•The population of the country may gain access to cheaper consumer goods.

•The benefit of cultural exchanges

On the negative side

•Sometimes much of the employment is low paid, low skill, long hours.

•There has been much negative press about poor working conditions, including lack of ventilation, lack of safety requirements and the intimidation of workers. Multi-Nationals like low overheads, so enjoy business where there is less red tape with regard to safety and environmental protection legalisation.

•Management positions may go to foreign employees brought in my the TNC.

•Use of child labour, knowing or unknowingly.

•Much of the profit generated is exported, or ‘leaks’ back abroard.

•They aren’t particularly impressed by Trade Unions.

•They have no specific loyalty to a nation, so are willing to export production to low cost locations.

•Sometimes grants and subsidies are used to attract such companies, which could have been used to invest in native industry.

•Native industry may not be able to compete with the investing company.

•Sometimes workers in the country, may not be able to afford the consumer goods they manufacture.

Also, see this:

http://answers.yahoo.com/question/index;_ylt=ApmTh...