Impacts of economic change

Multiplier effect

1970s-1980s \= investment by foreign TNCs in EU, training and employment grew, multiplier effect created, opportunities for people and places, increase in international opportunities, firms specialised in areas where they had comparative advantage

Positive impacts of economic change in ACs

Increase in industrial efficiency caused development of new tech and promotion of entrepreneurship which attracts FDI, growth of LIDCs caused increasing demand for exports from ACs, loss of mining and manufacturing improved environment

Negative impacts in ACs

Global shift caused secondary job loss, TNCs relocated internationally for lower costs and increased profits, workers who lost jobs may not have been able to transfer skills to new jobs so remain unemployed

Positive impacts in EDCs and LIDCs

Reduces negative trade imbalances, led to exposure of new tech + skills improvement + labour productivity, higher export generated income produces export led growth which promotes investment and creates multiplier effect

Negative impacts in EDCs and LIDCs

Industrialisation causes environmental degradation, leakage occurs where TNCs send money back to source country, unlikely to decrease inequality due to jobs concentrated in core areas