role of transnational corporations

• many trans national corporations have set up factories and offices in India, the country is an attractive location to TNCs because the population speak good english, they have strong IT skills and they work for lower wages
• companies like toyota, volvo and hyundai manufacture cars in India
• advantages

  TNCs have created jobs and offered education and training to employees
• advantages

  the companies help the development of the country by bringing in technology and knowledge that the host country does not possess
• advantages

  companies bring with them the technology and expertise to reduce harmful pollution and create a safe working environment
• advantages

  the additional wealth has led to the multiplier effect
• advantages

  some TNCs have set up schemes to provide new facilities for local communities
• advantages

  the infrastructure of the country has been improved, with new roads and internet cabling
• advantages

  TNCs pay tax to the government, which can be spent on development projects
• disadvantages

  some corporation leaders have taken advantage of the relaxed environmental laws in the country by creating lots of pollution
• disadvantages

  the conditions for workers in factories can be very harsh
• disadvantages

  the wages paid to local workers are often low and some companies have been accused of exploiting the local workforce rather than benefiting it
• disadvantages

  many TNCs are owned by foreign countries so economic leakage occurs, where profit is sent abroad
• disadvantages

  TNCs use many of the countries natural resources