Key learning points

1. Transnational companies can bring benefits and disavantages to countries.
2. Benefits from TNCs include the creation of jobs, new trade markets and better education to produce skilled workers.
3. Disadvantages of TNCs can include exploitation of the host country, poor treatment of workers and environmental damage.

Keywords

• Infrastructure - all the basic systems in a country, such as transport and power supply

• Host country - the new country which the TNC has set up a new factory, office or shop in

• Standard of living - the level of necessities and comforts of daily life that is available to and affordable by a person

• Multiplier effect - More people have jobs so have more money to spend, giving other businesses more money so they expand and employ more workers

Common misconception