MNCs & NICs

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MNCs & NICs

  1. 1. Mock SDME exam 17th November Sports Hall
  2. 2. Mock SDME PrepMock SDME Prep Exam theme = “How do multinational companies affect development?”
  3. 3. Important keywords: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. 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. 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. 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 ofAdvantages of locating inlocating in NICs / LEDCsNICs / LEDCs
  7. 7. Advantages & Disadvantages for the NICs AdvantagesAdvantages DisadvantagesDisadvantages
  8. 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. 9. The Resource Booklet Has tons of info!!
  10. 10. The Resource Booklet Has tons of info!!

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