Case Study 14: Coca Cola

Question 1

What is in MNC

Answer 1

A multiInternational corporation or multinational enterprise is a corporation that is registered in more than one country or the has operations in more than one country

Question 2

Socially why does Coca-Cola have most of its factories in India

Answer 2

1. no trade union is – people aren’t protected by outside bodies
2. people willing to work longer hours in harsh conditions
3. Child labour
4. less government power or control
5. less aware of their rights

Question 3

Economically why does Coca-Cola have most of its factories in India

Answer 3

1. cheaper wages
2. coca-Cola becomes more widely known and enters international markets
3. trade benefits
4. cheaper land
5. Taxbreaks

Question 4

Environmentally why does Coca-Cola have most of its factories in India

Answer 4

1. more resources available
2. resources are cheaper or free, such as water
3. less environmental restrictions

Question 5

Where is Coca-Cola’s HQ

Answer 5

Atlanta, Georgia

Question 6

Where are the factories that most of Coca-Cola bottle their drinks

Answer 6

India

Question 7

What are the positive impacts of Coca-Cola have a massive it’s factories in India

Answer 7

1. foreign investment into India
2. Job opportunities
3. training opportunities
4. money might trickle down into education/health care
5. ability to compete on the global market

Question 8

Negative impacts of Coca-Cola have the most of its factories in India

Answer 8

1. water shortages for local farmers, therefore less crop yields
2. Poor pay for long hours
3. lowering the water table
4. diverting water
5. coca-Cola is a footloose company – could leave at any time

Question 9

What is this case study about

Answer 9

Case study of one MNC: reasons for locating in countries at different stages of economic development (study of an international scale and the local, regional or national economic and social effects of these decisions)