Think of a country’s development like a plant: some grow fast and tall (high‑income), while others grow slowly and need more care (low‑income). Economists use indicators such as GDP per capita, human development index (HDI), and access to services to classify countries.
MNCs are like big delivery trucks that bring goods, jobs, and technology across borders. They can:
Below is a quick snapshot. Use the table to remember the main points for exams.
| Positive | Negative |
|---|---|
| Job creation & higher wages | Job displacement in local firms |
| Technology & skills transfer | Dependence on foreign technology |
| Infrastructure development | Environmental degradation |
| Increased exports & trade | Market dominance & reduced competition |
Coca‑Cola invested in a bottling plant in 1994, creating ≈2,000 jobs and improving local supply chains. However, critics argue that:
This example shows how MNCs can be a double‑edged sword.
• Use the table format in your answer to show both sides quickly.
• Give one concrete example (e.g., Coca‑Cola) to illustrate each point.
• Explain the link between development level and the impact (e.g., low‑income countries may suffer more from environmental damage).
• Remember the word limit – keep sentences short and to the point.
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