TNCs, investments and industrial development

What does this TNC do?

• Extract oil from the ground

• Sell petrol and other products

• Refine oil into different products

• Promote the use of renewable energy

TNC builds factory in NEE > Local people receive stable employment > Local people have more disposable income > Local people buy more goods (e.g. TVs) > ???? What's the next step?

• More TNCs invest in the country

• NEE falls into debt

• Local people become highly skilled

• TNCs pull out of country

When TNCs or countries spend money in a country other than their own this is called?

• Aid

• Loan

• Foreign investment

• Debt

How much of world trade (trade between countries) is controlled by TNCs?

• 100%

• 70%

• 50%

• 30%

Industrial development or industrialisation is the process by which....

• A country becomes richer

• A country manufactures more and more goods

• A country becomes focused on services (e.g. banking)

• A country focuses on growing its agriculture

When TNCs invest in a country, which of the following does NOT happen?

• Port facilities are expanded and improve

• Roads are built

• Electricity supply is improved

• Attracts a lot of tourists

When an NEE country starts to experience industrial development, what 'effect' occurs?

• Multipler

• Feedback

• Trade

• Unionisation

Which country is investing HUGE amounts of money into African countries (e.g. building a hydroelectric dam in Madagascar) in order to secure resources and generate profits but also helping these countries to develop?

• USA

• China

• India

• UK