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The operation of many TNCs in Less Developed Countries is often controversial. Transnational Corporations (TNCs) are companies with branches in many different countries worldwide. They have their headquarters in their country of origin, and many manufacture their products in LEDCs, where cheap labour is abundant, saving companies money. Do TNCs benefit LEDCs? TNCs do bring much needed jobs, teach workers new skills, and bring money to the host countries e.g. in the form of taxes to the government or by beginning to integrate the country into the global market. Sometimes they provide benefits for their workers, such as healthcare or extra training. Many TNCs provide higher wages and safer work conditions than local firms, making them more appealing. What are the disadvantages of TNCs in LEDCs? Most of the profits made do not actually go to the host countries - they are channelled directly back to the TNCs themselves. Many products manufactured for TNCs...

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