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26 Cards in this Set
- Front
- Back
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Based in
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Europe
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Involved in
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Oil and gas production
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Joint owned by
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UK and Netherlands
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Operates in
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Over 140 countries
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Employs over
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112,000 people
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2004 net income
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$18.2 billion
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Economy- benefits to Nigeria
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Accounts for 20% of GDP and 95% of export earnings
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Nigeria is
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A poor LEDC- low quality of life and standard of living
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Employment- benefit to Nigeria
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Employs 5000 people, 95% of whom are Nigerian. Another 20,000 are indirectly employed by companies producing supplies and services
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Technology- benefit for Nigeria
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New and improved brought in
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Infrastructure- benefit for Nigeria
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New roads, airport, power and water supply improved
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Investment- benefit for Nigeria
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Inward investment- local economy improved. Multiplier effect.
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Exports- benefit for Nigeria
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Increased- more buying power for Nigeria
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Social improvements- benefit for Nigeria
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Education and health improved. Reduction in racism as people of different nations work together
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Government- benefits to Nigeria
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Have tried to improve situation by raising payment to local people from 3% to 13% oil revenues
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Power- cost for Nigeria
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Oil based economy- large oil TNCs have considerable power and influence in a politically unstable country
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Lifestyle- costs for Nigeria
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Oil production took place at cost of lifestyle and environment of area. Overcrowding and increased urbanisation
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Finance- costs for Nigeria
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Locals saw few financial rewards for disruption to lives. Profits maily go back to UK. Foreign decision makers not concerned about locals.
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Environment- costs for Nigeria
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Oil spills contaminate food supplies. Gas flaring pollutes. Deforestation
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Exploitation- costs for Nigeria
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Local labour force often exploited with long working hours and low pay. Children often employed. Health and safety issues.
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Competition- costs for Nigeria
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Competition with local industry
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Profits- benefits for UK
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Mainly go back to UK so makes a lot of money
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Production costs- benefits for UK
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Low production cost and wages, land is cheap and transport cost lower
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Grants- benefits for UK
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Past economic problems in Nigeria mean government of Nigeria more likely to offer grants/financial help/lower rates and taxes as incentives
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Environment- benefits for UK
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Less environmental restrictions so reduced production costs
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Exploitation- costs for UK
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Can give them bad press for exploiting LEDCs where wages low and working conditions/environmental conditions/damage done to country by TNC bad
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