3.1 Transnational corporations Flashcards
1
Q
What does the word TNC mean?
A
TNC means Transnational corporation
2
Q
What is a transnational corporation?
A
A transnational corporation is a company that operates in more than one country.
3
Q
What does mean FDI and what is it?
A
FDI is foreign direct investment. Foreign direct investment is the investment in companies and assets of another country by a foreign investor. The foreign investor may be another government or from a TNC.
4
Q
What is the multiplier effect?
A
The multiplier effect is the ‘snowballing’ of economic activity e.g. If new jobs are created, people who take them have money to spend in the shops, which means that more shop workers are needed.
