4.4.3 - Controlling MNCs

Question 1

4 ways actions of MNCs can be controlled

Answer 1

1. Political influence
2. Legal controls
3. Pressure Groups campaigns
4. Social Media

Question 2

How does political influence control MNCs?

Answer 2

Political institutions enforce laws and regulations which businesses need to adhere to
- Tarrifs, Quotas and regulations
- Lobbying (MNCs trying to influence decision makers in Gob

Question 3

How does legal control control MNCs?

Answer 3

Governments can enforce legislation and regulation to control the operations of MNCs
- Governments want to attract MNCs to help boost their economy, so creating legal control in areas relating to taxes and employment ensures stability for the MNC

Question 4

How do pressure groups control MNCs?

Answer 4

Pressure groups can take action in different forms, such as:
- Naming and shaming
- Direct action
-Lobbying by taking issues directly to the government

Question 5

How does social media control MNCs?

Answer 5

MNCs can use social media to their advantage to spread awareness and promote their business on a global scale
- Stakeholders van also share information about the unethical behaviour of MNCs
- MNC influence on social media may be limited in some countries as they have regulations in place to manage social media power