Discuss how the operations of Multinational Companies may contribute to the widening economic gap between developing and developed countries. - Leaving Cert Geography - Question 13 - 2010

While MNCs can bring jobs to developing countries, these positions often pay lower wages compared to those in developed nations. This wage disparity may lead to higher profits for the MNCs and a continuation of the economic gap, as local workers in developing countries might earn significantly less than their counterparts in developed regions.

MNCs usually have access to advanced technologies and innovation, which they may not fully transfer to developing countries. This can result in a persistent technological gap, whereby developing countries remain dependent on foreign companies for technology, hindering their economic growth and contributing to a wider economic gap.

MNCs may exploit natural resources in developing countries without adequately compensating local economies or communities. This exploitation can lead to environmental degradation and a depletion of local resources, further entrenching the economic divide as profits are repatriated to developed nations rather than reinvested locally.

The dominance of MNCs can undermine local businesses in developing countries. Small and medium enterprises may struggle to compete with MNCs, leading to a monopolistic environment where wealth remains concentrated among a few large corporations, exacerbating the economic disparity.

MNCs often engage in tax avoidance strategies, taking advantage of loopholes in developing countries' tax systems. This behavior limits the revenue that governments can generate, impacting public services and infrastructure development, which are necessary for economic growth and reducing the economic gap.