Role of TNCs - advantages and disadvantages to Uganda ‘Uganda: A Case Study of a LIC’ by Owen and Witts 2017 and associated resources are licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

Starter: Look at these pictures from Kampala. What are TNCs Starter: Look at these pictures from Kampala. What are TNCs? Can you see logos associated with TNCs?

Lesson objectives Know what TNCs are and why they locate in LICs such as Uganda Understand the advantages and disadvantages TNCs can bring to LICs such as Uganda

Key Term: Transnational Corporation (TNC) A company that has operations (factories, offices, research and development, shops) in more than one country. Many TNCs are large and have well-known brands.

Transnational Corporations in Uganda Transnational corporations are organisations found in more than one country. They often locate factories in LICs and NEEs because there is cheap labour and and cheaper production costs. TNCs such as Barclays Bank, Coca Cola and KFC have come to Uganda to widen their market and so make greater profits. TNCs bring investment to their host countries and create jobs for local people. They often bring new technology and stimulate improvements in infrastructure. For a summary of benefits to TNCs to host countries see https://www.youtube.com/watch?v=Q41iz6D7J-k

Disadvantages of TNCs However, much of the money made by TNCs goes back to the company’s country of origin and workers are often paid low wages. TNCs may pollute the environment. An example of this has happened in Nigeria, where oil TNCs are avoiding paying taxes which could help the country to develop - to find out more see https://www.youtube.com/watch?v=SR_kskKtstw

TASK: TNCs snakes and ladders Either… … play a game of TNC snakes and ladders that has been created for you Or… … design your own game of TNC snakes and ladders to show opportunities and problems created by TNCs in Uganda and then play it

TNCs Snakes and Ladders 33 34 35 36 Pollution leaks from a TNC’s factory into Lake Victoria 37 38 39 Workers in new factories are paid low wages by TNCs FINISH 32The profits from Barclay’s Bank in Kampala go back to the UK 31 30 29 28 27 26 25 17 18 19 20 TNCs bring in their own staff to do T the top jobs 21 22 23 24 16 15 Other TNCs see that Barclays are in Uganda and decide to move their too 14 13 12 11 10 9 1 2 3 4 5 6 7 8 Barclays Bank lend money to small businesses, creating a multiplier effect More flights leave from Entebbe Airport due to demand from TNCs Jobs created in new Coca Cola plant

Make your own TNCs Snakes and Ladders 33 34 35 36 37 38 39 FINISH 32 31 30 29 28 27 26 25 17 18 19 20 21 22 23 24 16 15 14 13 12 11 10 9 1 2 3 4 5 6 7 8

Exam Alert! Discuss the advantages and disadvantages of TNCs to a LIC or NEE you have studied (6 marks)

Reflection... Peer assess your exam answers, then make any improvements needed. Level 1 (1-2 marks) - Basic - Demonstrates limited knowledge of locations, places and environments. Shows limited geographical understanding of advantages and/or disadvantages of TNCs. Level 2 (3-4 marks) - Clear - Demonstrates accurate knowledge of locations, places and environments. Shows sound geographical understanding of the advantages and disadvantages of TNCs. Level 3 (5-6 marks) - Detailed - Demonstrates thorough application of knowledge and understanding of the advantages and disadvantages of TNCs. Provides a well developed discussion.

Homework (Flipped learning) What is a trading bloc? Is Uganda part of one?