The Government in country Y wants to encourage more secondary sector business activity to help reduce unemployment. It has announced a reduction in taxes and plans to remove some legal controls over business activity. Kasper Construction is a multinational company based in country X which wants to expand. It plans to build a brick-making factory in country Y if it can find a suitable location. Some pressure groups are against this plan as Kasper Construction has a bad reputation for environmental damage.
- FIG 1.JPG (18.86 KiB) Viewed 2 times
07 Do you think that the Government of country Y should encourage Kasper Construction to locate in country
Y? Justify your answer. [6]
Possible KN Points:
• Create jobs
• Tax receipts
• Develop local expertise
• Develop local infrastructure
• May exploit local labour force
• Deplete natural resources
• Take profits out of the country
• Damage to environment