TNC

• TNC stands for transnational company
• Advantages of TNCs include

  • Bringing financial investment into the host country’s economy
  • Providing jobs and training to local people
  • Higher wage levels
  • Introducing new technology
• Disadvantages of TNCs include

  • Paid wages tend to be lower than the home country of the TNC
  • Causing significant environmental damage
  • Being able to withdraw from a country if circumstances change
  • Raw materials are exported before being refined which reduces profits in LICs and NEEs
• 40 million litres of oil are spilt in the Niger Delta each year
• Life expectancy in the Niger Delta is ten years below the national average
• Shell spent £20 billion in corporation tax
• Shell has provided 65,000 jobs in the oil industry