TNC's

• Advantages of TNCs in Nigeria


  - provide employment and development of new skills

  
  

  - more money is spent on the economy

  
  

  - investment in local infrastructure and schools by companies

  
  

  - other local companies benefit from inc orders

  
  

  - valuable export revenues
• Disadvantages of TNCs in Nigeria

  - local workers sometimes poorly paid

  
  

  - Grants and subsides used to attract TNCs could have been used to invest in Nigerian industry

  
  

  - working conditions sometimes very poor

  
  

  - management jobs often go to foreign employees brought in by the TNC

  
  

  -much of the profit goes abroad
• What is a TNC?

  A transnational corporation is a large company that operates in several countries.

  
  

  It has its headquarters in one country with production plants in several others .
• How have TNC's helped Nigeria

  They have created:

  
  

  Tax incentives

  Cheaper labour

  Laxer environmental laws

  Access to a wider market
• How have Nigeria's political relationships with the world changed?

  1. Nigeria has become independent in 1960
  2. Become a part of the British Commonwealth
  3. Become a leading member of African political and economic groups

  E.g) United Nations - In 2013 Nigeria contributed the 5th largest number of troops to the UN peacekeeping force.
• How have Nigeria's trading relationship with the rest of the world changed?

  1. Its main exports are crude and refined petroleum, natural gas, rubber
  2. One of the fastest imports is telephones. Imported from China, these are in demand from Nigeria's growing population.
• Advantages of Shell in Nigeria


  • Economic - Major contributions in taxes and export revenues
  • Benefits to locals - Provided 65,000 people employment and a further 250,000 jobs in related industries
• Disadvantages of Shell in Nigeria

  • Environmental - Oil spills in the Niger Delta caused water pollution and soil degradation, reducing agricultural production and frequent oil flares send toxic fumes into the air

  
  

  • Social - Oil theft and sabotage are big problems and Militant groups distrupt oil supply in the delta
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  • Economic - Reduced production levels which costs TNCs and the government billion of dollars every year.