4.4.1 Impact of MNC's

Question 1

What is a Multi National Company?

Answer 1

A company that operates a business in more than one country.

Question 2

What impact do MNC’s have on the local economy?

Answer 2

Positive:
- Create more jobs, may have higher wages if unemployment is low.
- Working conditions are likely to be better as MNC’s tend to have a more modern approach.
- Workers have an opportunity to develop new skills.
- Local businesses will benefit from an increase in trade and profit.

Negative:
- MNC’s may take workers from local businesses and customers.
- May damage the environment.
- May exploit local workers.