2.2+Motorola+in+Poland

**Motorola in Poland**
- Motorola has 19 software centers all over the world (MEDCs) - New one in Krakow, Poland Incentives to locate there: - Modern Technology park - Poland offers companies with an expenditure of over 2 million per year, 0% income tax for the first 6 year and a 50% reduction in tax afterwards. - Close to a good univeristy: able to recruit young, smart people to employ - Wages for software engineers in Poland are one third those expected in Western Europe or USA
 * Describe and explain the main changes:**

- Poland's unemployemnt falls (also due to multiplier effect) 4.5% in Krakow as opposed to 18% in other areas of Poland - Also shows confidence in the country which serves as an incentive for other TNCs to invest in the area. - Motorola doesn't have to pay taxes, cheap labor so it makes more profit
 * Benefits:**

- Out competing smaller companies in the area - Not paying taxes, so Motorola benefits but doesnt do anything for Poland. taking advantage??
 * Problems:**

- The benefits outweigh the problems because Poland's unemployment has fallen. - Workers will gain experience and skills that they can transfer to other companies within Poland - Multiplier effect: they need other TNCs to invest they sacrifice the taxes in order to make jobs for their people which in the end will benefit the country. Also, workers will spend thier incomes, creating demand for other sevices.
 * Evaluation:**