1.

Examples of multinational companies that have invested in South Africa are BMW and
Volkswagen.

2. The two possible reasons for multinational companies setting up factories in South Africa
are because of its labor militancy and political uncertainties.

3. possible benefits South Africa might gain from the investment by multinational
companies are the economic benefits and job opportunities.

4. Multinational businesses are businesses that operate in multiple countries to either

decrease the tax charged on their profit or start production of goods and services in a
new market. The problem is that Eastern Cape is one of the poorest regions with
average black income being Rand 5000 annually compared with white income being
Rand 45 000 annually. This is why when Volkswagen was looking for only 1300 workers
23 000 turned up as they lack economic finances. This shows that there is a clear lack of
balance of income.

The advantage to South African government supporting investment by MNC is greater

economic development for the country and higher-income job opportunities for the
people. A solution to help the country is that the South African government let MNCs
open as they will help give more economic opportunities to the country.

The disadvantages to the South African government supporting investment by MNC is

that people will get paid according to their skin color. Not everyone gets the job
opportunity, and some might get different income because of their skin color is black or
white. This can lead to a huge unemployment problem in the country. A solution to help
the country is by not letting MNCs open, and instead that the South African government
should open businesses for its citizens and doesn’t pay differently according to the
workers’ skin color.

In conclusion, MNCs can be helpful for economic development for the country, but it has
some disadvantages. As there is not a balance of income, which means that not
everyone will get jobs, and while whites get paid comparatively higher than the blacks.
So the best approach is by having MNCs to pay workers of different skin colors equally
and give everyone job opportunities regarding of their skin colors for the economic
development for the South African government and the country.