4.4.1 The impact of MNC's Flashcards
1
Q
Why is the entrance of MNC”s generally welcomed into a country?
A
it brings employment, provide businesses for local area and give a boost to the economy
2
Q
What four benefits does an entrance of an MNC bring to a community?
A
local labour and job creation
wages and working conditions
local business
local communities
3
Q
What does FDI stand for?
A
Foreign direct investment
4
Q
What 6 things does FDI bring to a country?
A
increase revenue increase tax revenue increase employment reduce national debts balacne payments new technologies/machinery
5
Q
What are 4 ways in which consumers can benefit from the entrance of MNC’s?
A
more choice
lower prices
improved quality
better living standards
6
Q
What is reserve engineering?
A
method of analysing a product’s design by taking it apart
7
Q
What is transfer pricing?
A
system operated by MNC’s to avoid high tax rates
