1.6 Multinational Companies Flashcards
Globalization
Integration, interdependence of goods and services around the world, changing the way in which nations and businesses interact
Multinational companies (MNC)
A company that operates in two or more countries.
Reasons for growth of MNCs
- Greater brand awareness
- skill transfer
- closer collaborations
- dismantling of trade barriers
Disadvantages for growth of MNCs
- Increased competition
- Adapting to different markets
- High costs
Advantages of MNCs on the host country
- Economic growth
- Tax payment
- New ideas
- Skills transfer
- Greater choice of products
- Short-term infrastructure projects
Disadvantages of MNCs on the host country
- Profits being repatriated to host country
- Loss of cultural identity
- Brain drain (high skilled employees leaving)
- Loss of market share of domestic markets
- Short-term, not intend to stay sometimes
Circular business model
The diverse ways in which good or services are produced, delivered and consumed with a reduced exaction of natural resources and waste
Advantages of circular business model
- Less damage to the environment
- Social responsibility
- Needs and wants of customers
- Increased interest (staff/investors)
- Differentiation / first mover advantage
Sustainability
the use of resources in a responsible way that wont damage them in a long term for future generations
Circular supply business model
replace use of scarce resources with more renewable or recyclable resources
Product life extension
Extend the life in which a product can be used by either rebuilding, remanufacturing, giving a new life to reduce waste
Product service system
Renting instead of selling. Incentives to make the best possible products that can be leased producing less
Sharing platform/model
Reuses products for other production processes, maximizing the value of waste
Resource recovery
Design of products with max efficiency and innovative wayts to recycle it. New possibilities
