4.4 - Global Industries Flashcards
1
Q
Multinational Company
A
Business that has operations in more than one country
2
Q
Benefits of MNCs to the countries they operate in
A
- Provide employment and training
- Transfer of skills and expertise
- Incentive for domestic firms to improve their competitiveness
- Increase in tax revenues
3
Q
Drawbacks of MNCs to the countries they operate in
A
- Domestic businesses may not be able to compete, resulting in business failure
- MNCs may not meet the host country expectations for acting ethically or socially responsible
- Profits earned may be remitted back to their home country rather than being reinvested in the host economy
- May use tax avoidance measures, reducing tax revenue
4
Q
Reasons why the activities of MNCs may need controlling
A
- Protect against exploitation
- Discourage resource depletion
- Ensure local culture is protected
- Discourage abuse of market power
- Protect domestic businesses
5
Q
Ways MNCs can be controlled
A
- Political influence
- Legal control
- Pressure groups
- Social media
6
Q
Pressure group
A
Organisation that seeks to influence government policies, business decisions, or public opinion without seeking political power. These groups represent specific interests and use various methods like lobbying, protests, and media campaigns to achieve their goals
7
Q
Ethics
A
Moral guidelines which govern acceptable behaviour
8
Q
Ethical behaviour
A
Doing what is morally right
9
Q
Benefits of behaving ethically
A
- Increased demand from positive consumer support
- Improve brand awareness and recognition
- Improved employee motivation and recruitment
10
Q
Drawbacks of behaving ethically
A
- Higher costs
- Higher overheads, such as training and communication of ethical policy
- Danger of building up false expectations
11
Q
Common ethical issues with MNCs
A
- Pay and working conditions
- Environmental impact
- Supply chain management
- Marketing
