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Year 8

TNCs: Advantages and disadvantages

I can explain the advantages and disadvantages of TNCs for both high and low income countries.

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New
New
Year 8

TNCs: Advantages and disadvantages

I can explain the advantages and disadvantages of TNCs for both high and low income countries.

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Lesson details

Key learning points

  1. Transnational companies can bring benefits and disavantages to countries.
  2. Benefits from TNCs include the creation of jobs, new trade markets and better education to produce skilled workers.
  3. Disadvantages of TNCs can include exploitation of the host country, poor treatment of workers and environmental damage.

Keywords

  • Infrastructure - all the basic systems in a country, such as transport and power supply

  • Host country - the new country which the TNC has set up a new factory, office or shop in

  • Standard of living - the level of necessities and comforts of daily life that is available to and affordable by a person

  • Multiplier effect - More people have jobs so have more money to spend, giving other businesses more money so they expand and employ more workers

Common misconception

Living standards and quality of life are the same.

Living standards are about the the level of necessities and comforts of daily life that is available to and affordable by a person.


To help you plan your year 8 geography lesson on: TNCs: Advantages and disadvantages, download all teaching resources for free and adapt to suit your pupils' needs...

Explain to students that often the advantages of TNCs are economic while a lot of the disadvantages tend to be environmental. Socially, people can be at an advantage or disadvanatage.
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This content is © Oak National Academy Limited (2025), licensed on Open Government Licence version 3.0 except where otherwise stated. See Oak's terms & conditions (Collection 2).

Lesson video

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6 Questions

Q1.
What does TNC stand for?
Correct answer: Transnational Corporation
Tree Nature Community
Third Natural Cooperation
Q2.
What is a transnational corporation (TNC)?
A company that operates only within one country
A local family-run business
Correct answer: A company that operates in multiple countries around the world
Q3.
Which of the following is an example of a transnational corporation?
A small local book shop
Correct answer: McDonald’s
A local farm shop
Q4.
Which of these is an example of a global transport route?
A road connecting two villages
Correct answer: The shipping routes between Asia and Europe
A railway line inside one country
Q5.
What is a disadvantage of globalisation?
More cultural understanding
Better quality products
Correct answer: Exploitation of workers and environmental damage
Q6.
Which of the following is an effect of globalisation?
Correct answer: Increased cultural exchange and sharing
Local cultures disappearing completely
More isolated communities

4 Questions

Q1.
What is one of the advantages of TNCs in LICs?
Correct answer: Job creation and economic growth
Reduced cultural exchange
More pollution in the environment
Q2.
Which of the following is a disadvantage of TNCs?
Correct answer: Exploitation of workers and environmental damage
Better wages for local workers
Increased access to technology
Increased local competition
Q3.
What does standard of living mean?
Correct answer: The level of necessities and comforts of daily life available to a person
The general well-being of individuals and societies
Individuals lack financial resources and access to basic services
Q4.
How could a TNC setting up a new factory improve living standards?
Increased employment
Multiplier effect
Increased tax revenue
Correct answer: All of the above