The+effects+of+transnational+manufacturing+and+services


 * Relocation of polluting industries **

Another important issue of concern to environmentalists is the relocation of polluting industries from MEDCs to LEDCs. They argue that because LEDCs have the desire to improve their economy, they may relax their environmental laws so as to attract foreign investors. This, they further argue, calls for the need for governments of LEDCs and TNCs to seriously consider the issue of polluting industries and impose sanctions on them


 * Reasons why polluting industries relocate to LEDCs**

1. High taxes on polluting industries in MEDCs

2. Strict environmental laws in MEDCs on pollution

3. High cost of Labour in MEDCs especially for manufacturing sector workers. I.e Low cost of Labour in LEDCs so polluting industries get to save money. In Mexico, Mexican workers are paid 1/5 of what American workers would be paid.

4. Deliberate policies by government of LEDCs to attract polluting industries eg Creation of free trade zones or export processing zones

5. People in developing countries desire some of the waste products in order to extract valuable minerals such as gold, platinum, aluminum etc in order to make a living. In Ghana for example, there exists a lot of scrap metal industries that extract old car parts and sell them. These scrap metal industries pay low taxes in exchange for giving the Ghanaian people jobs.

Case study of polluting industry – 1. **Maquiladora dev’t in Mexico.** Maquiladora industries - Summary • They are polluting industries US owned companies, located in Mexico. • Usually low-cost assembly plants that take advantage of relaxed environmental laws in Mexico. • Industries with high levels of toxic waste consists of the Maquiladora industries. • Located in places such as Cuidad Juarez, Tijuana and Nuevo Laredo. • They are important to Mexico because: • They are a source of labour for the economy (over 500,000 jobs) • They pay taxes to the government • They bring investment to the northern part of Mexico • However, • They are a source of pollution (air and water) Read the textbook (Geography Course Companion) for more information on Maquiladora industries.

This link also gives an idea of how e-waste has gone beyond mobile phones and computers to old kitchen, bathroom and laundry equipment **<span style="font-family: 'Lucida Sans Unicode','Lucida Grande',sans-serif;">: Microwaves and dishwashers dominate e-waste mountain **
 * <span style="font-family: 'Lucida Sans Unicode','Lucida Grande',sans-serif;">2. Relocation electronic waste to China **

<span style="font-family: 'Lucida Sans Unicode','Lucida Grande',sans-serif;">**3. Trafigura in Ivory Coas**t