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From course:

Economics A Level (DONEEEEEEE)

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Question:

What Negative Impacts do TNCs bring to the Table?

Author: eric_galvao



Answer:

-TNCs may Exploit Workers in Developing Nations by paying a Low Wage -TNCs can Force Local Firms out of Business, as the Domestic Industry can not Stand up to their Production and Prices -TNCs relocating can cause Mass Unemployment -TNCs can Withdraw Profits from one Place and put them in another with a Low Tax Rate. Tax Revenue is Missing -TNCs use their Influence onto Foreign Governments, which may be Political Corrupt -Governments may be Forced to Lower Corporation Tax to Incentives TNCs


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