1.6 Multinational Companies

Question 1

Gross domestic product (GDP)

Answer 1

Gross domestic product (GDP) is the value of a country’s
annual output or national income.

Question 2

Host country

Answer 2

A host country is any nation that allows a multinational
company to set up in its country.

Question 3

Multinational company (MNC)

Answer 3

A multinational company (MNC) is an organization that
operates in two or more countries, with its head office usually
based in the home country.

Question 4

Protectionist policies

Answer 4

Protectionist policies are measures imposed by a country to
reduce the competitiveness of imports, such as tariffs (import
taxes), quotas and restrictive trade practices.