4.4 Global Industries/Companies

Question 1

Impacts of MNC’s on local area

Answer 1

Job creation

Wages and working conditions - an increased demand for labour creates competition

Local businesses

Community and environment

Infrastructure

Social enterprise - MNC’s might organise enterprises to support domestic businesses

Question 2

Impacts of MNC’s on a global scale

Answer 2

FDI flows - when there is FDI a lot of money is invested

Balance of payments

Technology and skills transfer

Consumers will benefit as higher competition will lower prices give more choice and improve quality

Question 3

4 ways to control MNC’s

Answer 3

Political influence

Legal control

Pressure groups

Social media

Question 4

Ethics a business should consider

Answer 4

stakeholder conflict

pay and working conditions

The environment (emissions, waste disposal)

Supply chain considerations (exploitation of labour, child labour)

Marketing considerations (misleading product labelling, inappropriate advertising)