The risks are that TNCs: replace labour, especially unskilled, with capital; corner the market for skilled workers; create local monopolies; substitute imported goods for local; exploit lax environmental and labour laws; and create over-dependency on a dangerously limited range of products.
What are the disadvantages of TNCs?
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.
Why are TNCs bad for Globalisation?
Because of their greater technological capacity, the use of production techniques or substances that are often more ecologically damaging, and the larger volume of production that they characterise, TNCs usually have a negative effect on the environment when they newly produce in, or export to (or increase their ...
