4.4 Global Industries & Multinational Corporations

Question 1

what is an MNC

Answer 1

a firm that is based in one country and has outlets in other countries

Question 2

pros and cons of MNCs on employment, wages and working conditions 3,3

Answer 2

P- job creation for locals
-MNCs may offer competitive wages compared to local firms
-better working conditions than local firms

C-may exploit local workers if regulation is weak
-pay low wages
-may not create local jobs as firm may relocate their own workers

Question 3

pros and cons of MNCs for local firms 3,2

Answer 3

P- MNCs boost economy-> more spending in local firms
-potential opportunities for ventures/mergers
-local firms learn new skills->efficiency

C-MNCs can reduce the amount of workers if they offer better wages and working conditions
-MNCs may offer lower prices

Question 4

Pros and cons of MNCs on local community and environment 3,1

Answer 4

p- locals benefit from job opportunity
-MNCs invest in infrastructure->betters local community
-MNCs pay taxes which can be reinvested in the community

c-environmental damage

Question 5

MNC impacts on national economy

Answer 5

large FDI inflows
better balance of payments
technology and skills transfer

Question 6

what are business ethics

Answer 6

principles and norms that change business decisions

Question 7

current ethical issues

Answer 7

waste management
emissions

Question 8

factors to consider when controlling MNCs

Answer 8

political influence
legal control
social media
pressure groups