External Factors

External factors refer to those that take place outside the control of a country. Many
of these are historical and have played a significant role in determining the level of
development experienced by different countries in certain parts of the world.
 Examples of external factors are:

  Colonisation
  Trade
  Transnational Corporations (TNCs)
  Aid

 
Colonisation:
European empires expanded throughout the world in the sixteenth, seventeenth,
eighteenth and nineteenth centuries. This expansion was to benefit the colonial
powers by acquiring a source of raw materials as well as a potential market for their
products.
Trade:

developing nations rely on the production of goods (mainly agriculture) in their own
country to fuel their economic growth.
Most of the required goods needed within a country such as infrastructure &
technology often are brought in from external countries placing a financial strain on
the nations income. 
Developing nations usually rely on subsistence farming to feed their people. TNCs
and other developed nations threaten this system trying to secure land in poorer
areas.
Transnational Corporations (TNCs): 
Transnational corporations (TNCs) are large commercial enterprises operating in
more than one country.
They are attracted to less-developed nations because of their cheaper labour and
often more relaxed or less regulated rules governing working conditions,
Less-developed countries are offered aid from other countries as a means of helping
their citizens. However there is the possibility of countries becoming aid dependant. 
 Bilateral aid is given by governments to donor countries.
 Multilateral aid is provided through international institutions, such as UNICEF.
 Non-government organisations or charity aid is voluntary, private, individual
donations collected by organisations such as the Red Cross.
 Activity 2: Check your understanding (TNCs)
1. Create a mind map of as many TNCs that you can think of and list underneath
them their country of origin and where they manufacture around the world.
Below is a hint to get you started.
List.
1. Kfc: USA: AUS, NZ, IND, CAN
2. Nike: USA: AUS, NZ, CAN
3. Adidas: Germany: USA, AUS, NZ
4. Puma: Germany: USA, AUS, NZ
5. Vans: California: USA, AUS, NZ, CAN
2. With your mind map and the knowledge from the Nike video, explain some of
the positives and negatives a TNC can haveon the wellbeing of a country it
operates out of. (1 Paragraph Minimum or in a table format)
Nike is one of the worlds most popular and biggest Clothing and Shoes brands.
At the current date Nike is worth around 29 billion dollars which is more than
Iceland’s entire GDP. Nike is a global company with stores in almost every
country, but the shoes are manufactured in developing country’s by take
advantage of the low amount of the worth of the currency compared to the USD
or GBP. This means instead of paying someone 120$ say it was in America, they
can pay some one much less like 20$ in a developing country. Even though that
this is not right to the worker in developing countries it is still providing them jobs
and enough money to feed there family and have a house or shelter. But this
does not mean that Nike and other massive brands should continue paying them
so low but just increase there wage by instead of being 20$ to make it 40$ or
even 30$ because that much will still do a lot