Ethiopia has increasingly strong global links. A range of TNCs have begun operating in Ethiopia, in primary, secondary and some tertiary sectors:
Hilton Hotels (leisure and recreation services, hotel creation)- Siemens (manufacturing of telecommunications, electrical items and medical technology)
- General Electric (aviation manufacturing, delivering rail links)
- Afriflora (flower growing – largest producer of fair trade roses)
- Dow Chemicals (manufacturing chemicals, plastics and agricultural products)
- H&M (textiles manufacturing, university education in textiles)
Advantages Disadvantages
- Employment which increase locals’ income
- Investment in hotel infrastructure can increase tourism
- Workers in hotels are often paid a fair wage and may have access to facilities out of hours
- TNCs often invest in infrastructure e.g. roads and bridges, which benefits local people
- Workers in LIDCs are often paid a low wage and working conditions can be poor (often TNCs want to locate in LIDCs due to the lack of regulations on wages and working conditions). Workers in Ethiopia may get $50 a month whereas in an EDC they would get $175 for the same job
- TNCs can pull out of the country taking jobs and wealth with them
- Some profits from TNCs leave Ethiopia to benefit the origin nation of the TNC