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3.1 Development (TNC (case study: Nestle (Nestly's relationship with…

- - - - advantages
        
        research and development activists
        developing countries lack in research and development area. Expenditure and research and development is essential for promotion of technology. TNC has greater capacity for research in comparison to national companies. TNC survive in the international market through their advanced research and development activities
        
        employment opportunities
        increase in scale of production results in more job opprotinies. the entry of TNC helps in creating employment opportunities in production and marketing activities
        
        lower cost of production
        TNC carry on operations on a large scale, which ensure economic's material, labour and overhead costs
        
        potential source of captial and advanced technology economically backward countries invite TNC to generate economic growth and create job opportunities
        
        technological superiority TNC can participate in the industrial development programs of underdeveloped countries. they can produce goods having International standards and quality specialization by adopting the latest technology
        
        boot up basic income
      - disadvantages
        
        MNC may transfer technology which has become outdated in home country. Obsolete technology may be used in host country
        
        TNC does not operate with national autonomy, they may pose a threat on the economic and political sovereignty of host country
        
        TNC may kill domestic industry by monopolizing the market
        
        in·dis·crim·i·nate·ly lead to depletion of natural resources
        
        a large sum of profit flow to foreign countries, in terms of payments towards profit, dividends and royalties
        
        remittance of profit leads to net outflow of capital
        
        offer high wages to home employees
        
        TNC engages in antidumping activities such as formation of cartels and dumping
    - - advantages
      - disadvantages
        
        loss of jobs
        
        loss of tax revenue
        
        competive advantages over domestic firm
- - - - to balacne inaccuracies
        HUMAN INDEX INDICATOR - mixture of indicators
    - - indices do not always reveal substantial inequalities between different segments of society.
    - - Some countries do not wish to have certain index data collected
        e.g countries do not publish statistics about the no of immigrants/ migrants.
- - - - colonization