How Does Tnc Affect Me Essay

Introduction:

Everyone is connected to globalisation. Common foods that you buy may seem like they originated here in Australia, however they mostly originate from another country. Products like your iPhone, Nike shoes or your Nestle coffee didn’t originate here in Australia. For these products to be manufactured here would cost too much so the people behind these large corporations called TNC’s, move out to developing countries to get cheap labour.

History:

Most TNC's that originate from relatively rich countries. They stop manufacturing in their home country because the cost is too much, which leads to an indirect loss of jobs. The headquarters, research and development stay in the home country with no need to move. Among all the TNC’s in the world, oil companies and car manufacturing companies are the most common.

How does TNC affect me?

TNC’s have an impact on me by the products they release, the product I buy and the money they make for the country I live in. I own an iPhone and it was not manufactured in Australia. The iPhones parts travelled a long distance to get here in Australia. The metal was mined in one country while it was assembled in another. I buying the iPhone gives money to apple which gives apples mother country, California, a higher GDP which helps in numerous ways. In Australia’s case, the main company that brings money to the country is BHP Billiton which raises Australia’s standard of living.

What is a TNC?

A Transnational Corporation (TNC) is a company which works in at least 2 countries. Some of the well-known TNC’s that you may know are Toyota, Vodafone, Volkswagen, Nestle, Apple and the famous Nike. TNC’s operate very hierarchical with the headquarters, research and development often located in the mother country.

What are the TNC positives and negatives? How does it affect the

economy?
TNCs bring both positive and negatives. TNC positives are cheap labour, low production costs which result with larger profits. They can get such cheap labour because they are moving manufacturing process to third world countries. These third world countries accept this because it improves the level of education and technical skills of locals, and the TNC’s pay for local tax which helps pay for new and improved infrastructure like roads, airports and various services. The result of low production costs is due to the locals, not having any other jobs to takes and they take advantage of this. The TNC makes a lot of money because they a getting a large amount of labour, for a fairly small price. Many TNC rise the Gross Domestic Product (GDP) because they have to pay for tax. Since they pay their workers low, the workers have to work long hours in order to make a living for themselves and their family which leads to the negatives.
TNC negatives are exploitation of workers, insufficient attention to the safety and wellbeing of the workers and the protection of the environment. The workers get exploited by poor wages, long hours and abuse of workers. There workers get abused verbally and physically by the employer. The safety of the workers is at risk as well. They are allowed to go to the toilet or for a break. Sometimes the workers sleep in the factory because their next shift is in an hour and it is easier for them to stay there. The employer locks the room to make sure they can’t leave. There was a case on a sweat shop that had a fire on the inside and the workers couldn’t leave because they were locked in. their use of disposal isn’t economically friendly. They have dumps where used electronics are dumped for later disposal. The disposal process creates a large amount of carbon which is bad for the environment. They may also clear land for a factory to be place there.
To conclude, ways TNC’s affect the economy is loss of land and increase of infrastructure