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MNCs & NICs

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  • 1. Mock SDME exam 17 th November Sports Hall
  • 2. Mock SDME Prep Exam theme = “How do multinational companies affect development?”
  • 3. Important keywords:
    • MNC = Multinational Companies (a.k.a. TNCs, Transnational Companies)
    • NIC = Newly Industrialised Countries
    • MEDC = More Economically Developed Country
    • LEDC = Less Economically Developed Country
  • 4. What are MNCs + NICs and what are they like?
    • Use the textbooks to research MNCs and NICs.
    • Find out:
    • - what they are
    • - what kinds of countries MNCs locate in
    • - why do MNCs locate in these NICs
    • - 3 advantages
    • - 3 disadvantages
    Geog.GCSE p222, p232 New Key Geog p224-227
  • 5. MNCs
    • Multinational: have headquarters in an MEDC country (e.g. UK/USA) then factories located in NICs or LEDCs (e.g. Brazil, India)
    • Why this set-up?
  • 6. Low wage levels Less strict Health & Safety law Cheaper production costs NICs offer tax breaks / loans Cheaper land Cheap exports (because exchange rate is good) No/weak trade unions Advantages of locating in NICs / LEDCs
  • 7. Advantages & Disadvantages for the NICs
    • Advantages
    • Disadvantages
  • 8. Exam Q practice
    • “Describe & explain why an MNC like Adidas would locate in an NIC like India” [3marks]
    • “Why might the MNC Nike be unpopular with some people?” [4marks]
  • 9. The Resource Booklet Has tons of info!!