4.1.1 part 3

Question 1

How will investment from MNCs have a positive impact on the host nations balance of payments?

Answer 1

-goods that are exported from the new plant will generate further flow of money into the balance of payments
-initial flow of cash from FDI will help a countries payment balance

Question 2

What technology and skill transfer from MNCs mean for a host nation?

Answer 2

-new technologies and modern working practices introduced to country
-host countries workers may be trained to meet high skill demands

Question 3

What is export production?

Answer 3

Comes due to multinational using their productivity facilities as a basis for exports

Question 4

How will host nations consumers benefit from MNCS?

Answer 4

-more choice
-lower prices
-improved quality
-better living standards