MNCs

Question 1

Cause serious environmental damage to host countries

Answer 1

use their enormous financial CLOUT to bribe officials – carry out illegal activities like deforestation

e. g SHELL – extracts oil in Nigeria
- pollution near deltas. releases harmful gases

Unscrupulous methods of extraction – land becomes derelict – entrenched cycle of poverty

Question 2

SHELL - NIGERIA

Answer 2

• in order to attract investors (LDCs will lower their environmental standards)
• MNCs in foreign countries will benefit if governance is good; research shows that the revenue should have benefited Nigeria – but due to poor governance – did not benefit Nigeria)
• 85% of total exports earning does not go to citizens, but back to host country
• Nigeria still has 63% living below poverty line

Question 3

Exploitation of labour

Answer 3

Foxconn – workers worked long hours + poor environment

• In 2010, 18 workers tried to commit suicide, some succeeded

Question 4

MNCs have helped reduce poverty rate in by half in the past 20 years

Answer 4

Increased jobs, but still cannot keep up with population growth ( UnN rate increased from 18% to 25%

Question 5

Education can be the great equaliser

Answer 5

But education is still inaccessible to more than half of the world’s population due to

• lack of funding
• patraical mindset: e.g. Malala Yousafzai was shot in the head for attending school in Pakistan