Ethiopia's global connections (feb mock)

where is Ethiopia located?

Ethiopia is an LIDC located in Eastern Africa/in the horn of Africa.

what are examples of international trade in Ethiopia/some of Ethiopia’s global connections?

Ethiopia has increasingly strong global links, and a range of TNCs, such as Hilton Hotels, Siemens, Afriflora and H&M, have began operating in the country.

how has the TNC ‘Siemens’ positively influenced Ethiopia’s development?

• Siemens is a TNC that is helping to improve the levels of development in Ethiopia, as they have invested in building wind farms, and have also brought expertise and modern technology to Ethiopia that the country would not get without foreign investment.

• This investment and provision of expert knowledge and new technology allows Ethiopia to become a more developed country.

how do TNCs positively influence Ethiopia’s development through their investments in the country?

• Other TNCs operating in Ethiopia, such as Hilton Hotels, invest in infrastructure such as roads and bridges, and they also invest in hotel infrastructure.

• This has led to increased tourism and travel in Ethiopia, which boosts their economy and leads to economic development.

how do TNCs positively influence Ethiopia’s development by creating job opportunities?

• TNCs also allow for a rise in job opportunities.

• For example, over 2.5 million people in Ethiopia are employed in the tourism sector, and these workers are often paid a fair wage and have access to facilities out of hours.

• This increase in employment not only allows for locals to gain a stable income, but also leads to more tax paid to Ethiopia’s government.

• This can be invested back into the country to improve infrastructure and services such as healthcare and education.

how do TNCs negatively influence Ethiopia’s development through worker exploitation?

• Some TNCs that operate in Ethiopia exploit the lack of regulations on wages and working conditions.

• It was reported in 2019 that people in Ethiopia were being paid a mere $26 a month compared to $340 for the same job in Turkey and other EDCs.

how do TNCs negatively influence Ethiopia’s development by taking away some of the profits?

• Some of the profits from TNCs don’t stay in Ethiopia, but are instead leaked back to the ACs where the TNC headquarters are located.

• This means that Ethiopia does not fully benefit from the wealth generated by TNCs in their country, which doesn’t allow for more money to be invested in development.