1.6 Multinational Companies Flashcards
1
Q
multinational company
A
company that operates in more than one country
2
Q
host country
A
country that the business is moving to. usually where the HQ is.
3
Q
positive impacts on the host country
A
- 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
4
Q
negative impacts on the host country
A
- 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”
5
Q
factors determining the pos or neg impacts
A
- respect given to local culture
- whether corporation tax is paid
- whether they hire local EEs or bring them from HQ
- labour conditions they use
- can local bus. survive and thrive?
