FDIWhen a co rpo ra t i on i nves t s i n a f o re ign

coun t ry t o expand p roduc t i on o r sa les marke t

DEFINITIONS

MNC OR MNEA fi rm that expands product ion abroad to

increase revenue and profi tOLIGOPOLY

A system in wh ich a few la rge fi rms dominate the market

INTRODUCTION- How do MNC’s create growth in

LDCs

- In what ways do MNCs provide education, healthcare and employment in LDCs

Oligopoly and/or MNCs help growth in LDCs by providing employment,

education, training and healthcare

FAIRTRADE – Working to secure better agreements for farmers in LDCs

- A social movement that helps producers in LDCs to make better trading conditions

- 25 Organisations around the world

- Reilukauppa exists also in Finland

- Work for social democracy and good basis for selling goods

A British MNC founded in 1976

Differs from other multinational cosmetics companies mostly because of morals and ethics

E.g. oppose animal testing and believe in fair trade

The body shop-

A moral based cosmetics MNC

Arguably the greatest partner of global computer and communication firms

Multinational electronics contract manufacturing company

Founded by Mr. Terry Gou in 1974

Produce for various companies such as: Sony, Apple, Nokia, and HP.

Hon Wai Precision Industry co. - Foxconn

MNCs PROVIDING EDUCATION Fairtrade provides

school supplies, school meals, uniforms and tuitions for children in LDCs

Foxconn also has a public school system in he Longhua Sci. and Tech. park

“Dragon Fruit Lip Butter”, Body shops project helped to provide education in Kuwait

Training in MNCs

FOXCONNTimes are arranged for all new technicians to have

their training first about the job and then about the factory’s management

FAIRTRADETAF finances training sessions to assist producers in

LDCs to develop their businesses.Key objectives of TAF: Improved adminstration and

management, Improved skills and knowledge, and Increased productivity

Healthcare provided by MNCs

BODY SHOPNicaragua- Sesame oil

supplied: With he Brigido Co-Operative in the country, they have set out a clean water supplying project.

Tungteiya Women’s Shea Butter Association- Construction of 17 major health clinics in poor African rural areas.

FOXCONNAs plant locations

have spread out throughout inland China, young workers are selectively placed close to their home area in order to maintain a stable

CONCLUSION

MNCs can indeed also help growth and development in LDCs, not only cause exploitation of cheap labor and natural resources

Many MNCs provide various benefits for their employees, as mentioned before, healthcare, education and training

MNCs often pay above the local average wage, thus benefitting the society in the LDC