Transnational corporations, or TNCs, are companies that operate across more than one country. Modernisation and neo-liberal perspectives often argue that TNCs can support development by creating employment, increasing exports, transferring skills and attracting foreign direct investment. Dependency theorists are more critical, arguing that TNCs may reproduce underdevelopment by extracting raw materials, using low-wage labour, sending profits back to core countries and influencing governments. Export Processing Zones are special areas where governments may offer tax breaks, weaker labour protections or fewer regulations to attract foreign investment. Greenwashing happens when companies present themselves as environmentally responsible while continuing harmful practices. Corporate responsibility refers to attempts by companies to improve labour rights, sustainability or community investment, but sociologists debate whether these are genuine reforms or reputation management. The AQA Global Development checklist includes the role of TNCs, employment practices, export processing zones, corporate crime, greenwashing, corporate responsibility, neo-colonialism and environmental impact as key areas for revision.
This activity helps students evaluate the role of transnational corporations in global development. TNCs are often presented as engines of growth because they can bring jobs, investment, technology, training, infrastructure and export income. However, sociologists also criticise TNCs for exploitation, low wages, poor working conditions, profit repatriation, environmental damage, greenwashing, corporate crime and neo-colonial control. In this activity, students sort evidence into three judgement categories: whether it suggests TNCs help development, harm development, or depend on the wider context. The aim is to build balanced evaluation rather than one-sided answers.
TNC Impact Balance Sheet
Sort each piece of evidence into the judgement category it fits best: does it suggest TNCs help development, harm development, or depend on the wider context? Use the feedback to build balanced evaluation.
Helps development
Evidence suggests TNCs create jobs, raise incomes, increase exports, transfer technology or support infrastructure.
Harms development
Evidence suggests exploitation, profit leakage, environmental damage, corporate crime or neo-colonial control.
Depends on context
Evidence is mixed and depends on regulation, wages, tax rules, labour rights, environmental standards and state power.
Revision summary: evaluating TNCs
- TNCs may help development by creating employment, export earnings, training, infrastructure and technology transfer.
- TNCs may harm development through low wages, poor working conditions, profit repatriation, environmental damage and corporate crime.
- EPZs can attract investment and jobs, but may also rely on weak regulation, tax breaks and limited labour rights.
- Greenwashing means companies appear environmentally responsible while continuing harmful practices.
- Balanced evaluation asks whether the outcome depends on state regulation, union strength, tax rules, local ownership and environmental protection.
Balanced evaluation sentence builder
Try this structure: “TNCs may help development because…” + “However, they may also harm development because…” + “Overall, the impact depends on…”
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