Case Study: TNCs in India
Geography: AQA GCSE, topic 5.1.15
Trans-National Corporations (TNCs) in India
TNCs (Trans-National Corporations) are businesses that sell goods & services globally in lots of different countries. Unilever Hindustan and Vodafone India are TNCs operating in India.
What are the advantages of TNCs in India?
- In 2018, Unilever Hindustan employed 18,000 people.
- In 2018, Vodafone India also employed 18,000 people.
- TNCs create jobs. They also train local people in skills demanded in developed countries, allowing more value to be added in India, rather than added in developed nations.
- Both Unilever and Vodafone make profits in India, which can be taxed by the government. The taxes can then be spent on improving India's infrastructure and public services.
What are the disadvantages of TNCs in India?
- TNCs often take the profits made in India and give them to Western shareholders as dividends.
- TNCs may stop new local businesses emerging; competing against Unilever and Vodafone can be hard.
- TNCs can make developing countries compete by promising jobs in exchange for tax incentives. Ireland is a developed country. However, it offered businesses like Apple tax incentives to operate in Ireland instead of other European countries.
Test yourself on Case Study: TNCs in India
What do we call companies that are located in, or make and sell products in more than 1 country?
What is Unilever (who make Marmite) an example of?
What are the advantages of trans-national corporations for their host country?
What are the disadvantages of trans-national corporations for their host country?