Explain two possible negative impacts a multinational corporation might have on the host country.

One negative impact a multinational corporation might have on the host country is employing children at a very low cost. Many manufacturing companies source their production in developing economies where they can access lower wage costs. An example of this is Primark who employ children as young as 11 and pay them just 60p a day to work in a sweatshop in India. Consequently, living standards in India go down as more children are left in poverty and the development of the country can be effected. Another way in which multinationals can have a negative impact on their host country is through inappropriate promotional activities. Large companies expand and begin to sell in developing countries where they can have a large impact on culture and the way people live. An example of this is Marlboro cigarettes. Their extensive and previously uncensored promotional campaigns across developing nations such as India have had a negative impact on children. In India, 5,000 children take up smoking everyday. As a result, living standards go down and the government will have to spend more money on health in the future.