Here is a lovely slideshow, with some stunning photography of the Faroe Islands (halfway to Iceland) as well as Iceland itself.  Enjoy. 

[slideshare id=188800&doc=traveling-iceland-h-1196595785731122-2&w=425]

[slideshare id=190943&doc=iceland-2524-1196741627162629-3&w=425]

What are they?

TNCs are large multinational companies with bases in several different countries.  For example…. BP (British Petroleum has it’s HQ in the UK, but has other bases around the worlds’ oilfields).

TNCs always have their HQs in MEDCs but place their factories in LEDCs where wages and production costs are lower.

What are the advantages of TNCs?

• bring capital, modern technology and skills into an LEDC.
• the infrastructure of an LEDC is improved.  E.g. better roads are built, and electricity networks are established by TNCs.
• the LEDC starts to increase it’s exports and the country starts to gain some capital (gets richer).
• the multiplier effect (jobs start to be created that supply parts etc. for the TNC industries).  This again produces more jobs and wealth for the LEDC.

What are the disadvantages of TNCs?

• TNCs omly pay low wages, and most profits made are taken out of the LEDCs to the company HQ in the  MEDCs.
• If the TNC business starts to fail,  TNCs just shut down their business in the LEDC and leave.
• Workers have to work with lower Health and Safety Standards than in MEDCs.
• TNCs greate lots of environmental problems. E.g. Pollution, because there may be no such controls in LEDCs.