Question: What are the advantages of TNCs in Nigeria?

Advantages of TNCs locating in a country include: creation of jobs. stable income and more reliable than farming. investment in infrastructure , eg new roads – helps locals as well as the TNC.

What advantages do TNCs bring to Nigeria?

Advantages of TNCs locating in a country include:

  • creation of jobs.
  • stable income and more reliable than farming.
  • improved education and skills.
  • investment in infrastructure, eg new roads – helps locals as well as the TNC.
  • help to exploit natural resources.
  • a better developed economic base for the country.

How many TNCs are in Nigeria?

A Trans National Corporation or TNC is a large company that operates in several countries. A TNC usually has its headquarters in a HIC and production plants in NEE / LICs. There are forty TNCs operating in Nigeria.

What impact have transnational corporations had on Nigeria?

Advantages of TNCs include: international links that provide access to markets around the world. bringing financial investment into the host country’s economy. providing jobs and training to local people.

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What are the advantages and disadvantages of transnational corporations?

Advantages: They create jobs for the local population. Disadvantages: Often the jobs are highly skilled and so the company brings in their own people to do them. Also, the technological nature of many of these companies means that there aren’t as many jobs as there might have been.

What are the disadvantages of Shell in Nigeria?

Shell Oil also operate in Nigeria however:

  • Oil spills have caused water pollution and damaged the land reducing agricultural and fishing yields.
  • Toxic fumes are polluting the air.
  • Militant groups disrupt the oil supply.
  • Oil theft is a costing the government and TNCs billions of dollars every year.

Is Shell good for Nigeria?

Shell’s work in Nigeria produces more than 21% of the country’s total petroleum production from more than eighty fields. Shell bring positives and negatives to the country. There are many positives and negatives of Trans National Corporations for a country like Nigeria. … Shell has spent $12 billion in LICs for example.

Is Coca Cola a TNC?

Coca-Cola now has 20 main brands that generate over US$45 billion a year in revenue and sales in nearly 200 countries. See map of world which takes you through Coca Cola as a TNC, the spatial organisation, headquarters, research and development, production and evaluation of the social and economic of this TNC.

Why is Nigeria an nee?

According to the World Bank, Nigeria would no longer be classified as a Low income country with a GNI of less than $1,045; it is a Middle Income Country that is also a Newly Emerging Economy (NEE) with a GNI of $5,360. … Despite being Africa’s largest economy, Nigeria is not a rich country.

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Is Nigeria an LIC or nee?

According to the World Bank, Nigeria is no longer be classified as a LIC (GNI less than $1,045) it is a Newly Emerging Economy (NEE) with a GNI of $5,360. … Despite being Africa’s largest economy, Nigeria is not a rich country.

Why are TNCs controversial in Nigeria?

Why have TNCs been controversial in Nigeria? Raw materials, such as oil, is exported to wealthier countries where it is refined then sold for greater profits. … Oil flares and toxic fumes have increased air pollution. TNC investment has led to over 65,000 local people being employed.

What is the role of TNCs?

Transnational corporations (TNCs) are playing a key role in the ongoing globalization process. Their strategies largely determine volume and nature of trade flows, foreign direct investments and financial flows.

Do transnational corporations only bring advantages to the host country?

‘Transnational corporations (TNCs) only bring advantages to the host country. … As a result, these employees have a higher disposable income, which increases the advantage of the TNC to the wider community. However, TNCs can bring disadvantages. In Nigeria, the disadvantages are largely environmental.

What are the negatives of TNC?

Disadvantages of TNCs locating in a country include:

  • fewer workers employed, considering the scale of investment.
  • poorer working conditions.
  • damage to the environment by ignoring local laws.
  • profits going to companies overseas rather than locals.
  • little reinvestment in the local area.

Are TNCs good or bad?

Besides that, TNC will bring in foreign direct investment (FDI), has a great influence in local economy and global economy as it can provide work opportunity, increase productivity, enhance in exportation and generates economic development in less developed countries or developing countries as well.

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What are the negative impacts of TNCs?

Environmental concerns – TNCs can cause damage to the atmosphere, water and land. Many developing countries have less strict pollution laws than those in the developed world.

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