1.6 multinational companies

Question 1

define a multinational company

Answer 1

A business organisation which has its headquarters in one country but has operations in a range of different countries

Question 2

What are 4 advantages of MNCs to host countries

Answer 2

1. Economic growth and employment
2. Skills, productive techniques and improvements in the quality of the workforce
3. Availability of quality goods and services in the host country
   4 improvements in infrastructure

Question 3

What ave 4 disadvantages to host country?

Answer 3

1. Effect on employment may be minor
2. Some MNCs may move readily
3. Pollution/environmental impacts
4. Profits leave host country

Question 5

Name three reasons to be a MNC

Answer 5

1. Reduce costs
2. Sell in new markets by being close
3. Secure supplies
4. Cost advantages ( e.g. Labour )
   s. Reduced risk

Question 6

Name 3 government impacts

Answer 6

1. Tax issues
2. Government part-ownership (investments)
3. Governments as customers