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Human geog paper - Coggle Diagram
Human geog paper
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Transfer of skills and expertise, helping to develop the quality of the host labour force
MNCs add to the host country GDP through their spending, for example with local suppliers and through capital investment
Competition from MNCs acts as an incentive to domestic firms in the host country to improve their competitiveness, perhaps by raising quality and/or efficiency
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Profitable MNCs are a source of significant tax revenues for the host economy (for example on profits earned as well as payroll and sales-related taxes)
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MNCs may not feel that they need to meet the host country expectations for acting ethically and/or in a socially-responsible way
MNCs may be accused of imposing their culture on the host country, perhaps at the expense of the richness of local culture. Might MNCs reduce cultural diversity around the world as they continue to expand, particularly into less developed or developing countries?
Profits earned by MNCs may be remitted back to the MNC's base country rather than reinvested in the host economy.
MNCs may make use of transfer pricing and other tax avoidance measures to significant reduce the profits on which they pay tax to the government in the host country
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