Great lesson today, despite several others off doing exams and various bits. I’m going to break this review into two sections, because it is near my self-appointed work cut off line.

To finish our discussion of Multi-Nationals, we discussed some generalisations of their impact on the countries they invest in, using some different supporting characters.

Remember this type of economic activity is called inward investment. Again we illustrated these points with some well-known examples.

On the positive side

• access to employment and the development of new skills.
• the population will have more money to spend in the economy, including the paying of having taxes.
• this will mean more income for improving infrastructure and services.
• generally quality of life could be improved.
• we used the term positive multiplier effect.
• The company may invest in local infrastructure, or support educational services, so that is has a good supply of workers.
• the status of an area would be raised, this may encourage investment by other big name Multi-Nationals.
• Other local companies would benefit from increased orders associated with the new development.
• Valuable export revenues will be earned.
• The population of the country may gain access to cheaper consumer goods.
• We didn’t discuss the benefit of cultural exchanges, i.e. Toyota-Derbyshire School Exchange.

On the negative side

• In LEDCs much of the employment is low paid, low skill,l ong hours, hence ‘screwdriver’ work.
• There has been much negative press about poor working conditions, including lack of ventilation, lack of safety requirements and the intimidation of workers. Multi-Nationals like low overheads, so enjoy business where there is less red tape with regards to safety and environmental protection legalisation.
• Management positions may go to foreign employees.
• Use of child labour, knowing or unknowingly.
• Much of the profit generated is exported, or ‘leaks’ back aboard.
• They aren’t particularly impressed by Trade Unions.
• They have no specific loyalty to a nation, so are willing to export production to low cost locations.
• Sometimes grants and subsidies are used to attract such companies, which could have been used to invest in native industry.
• Native industry may not be able to compete with the investing company.
• Sometimes workers in the country, may not be able to afford the consumer goods they manufacture.

Any points that I’ve missed?

We’ll come back to the issue of Multi-Nationals later in the course.

In the second half of the lesson we discussed some potential futures for the Stanton site, which generated an excellent heated discussion. I’ll summarise these viewpoints tomorrow, reveal the actual plan and draw a final point from this local issue.

Then stop shopping!

For those who were away, homework has been set. You must catch up on missing notes. Good luck with work experience everyone!

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Posted in Lesson evaluations, My place
Written on Tue, 13 March 2007 at 10:04 pm

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