4.1.5 Trading blocs, 4.4.1 The impact of the MNCs

Question 1

Home market

Answer 1

the number of customers that can be reached without needing to jump administrative hurdles

Question 2

Single market

Answer 2

dismantling trade barriers within Europe so that all 28 countries can treat the whole region as their home market

Question 3

Skills transfer

Answer 3

the way that technologies and management practices used by multinationals can generate spin-off benefits locally

Question 4

Subsidiary

Answer 4

a company set up to be subordinate to another

Question 5

Tax avoidance

Answer 5

legal, but perhaps not moral, ways of artificially minimising the taxes companies owe to society

Question 6

tax havens

Answer 6

countries or districts where taxes on company profit are close to zero. Multinationals and many other businesses artificially register their company headquarters in these- often tiny- ‘homes’

Question 7

Transfer pricing

Answer 7

a way multinationals can minimise their worldwide tax liabilities by transferring their profits from high-tax to low-tax countries