Unequal flows of money

• Overview:

  • Majority into LICs > foreign direct investment, aids, remittances
  • HICs mainly profit
• Benefits:

  • to recieving country > FDI improve QOL > provides income
  • aid and remittances also increase QOL e.g. rebuilding after disaster
  • to country sending money > lower labour costs and more profit
• Problems:

  • problems associated with unequal money flows concern injustice towards ppl living in LICs
  • companies in LICs operating from HICs create dependencies for workers > dependent on higher wages so subject themselves to dangerous situation e.g. sweatshops
  • Rana Plaza provide clothes for Primark, Walmart etc collapsed > 1000 dead
  • foreign air decrease invective for gov to help own countries
  • companies pressure gov to alleviate taxes so TNCs invest