1.6 Multinational Companies

Question 1

multinational company

Answer 1

company that operates in more than one country

Question 2

host country

Answer 2

country that the business is moving to. usually where the HQ is.

Question 3

positive impacts on the host country

Answer 3

• creates more jobs in the host country
• training opportunities for these local employees
• MNC might buy other inptus locally
• boosts the economy
• icnreased consumer choice
• enhanced competition for local businesses

Question 4

negative impacts on the host country

Answer 4

• potential bankruptcy of local businesses who can’t compete
• depletion of non-renewable resources in the host country
• potential negative impact on environment
• erosion of local culture - “Mcdonaldization”