Chapter 8.8

Question 1

What is a multi-national corporation (MNC) ?

Answer 1

A multi-national corporation is a business that produces and sells its products in different countries.

Question 2

What are the three largest MNC’s whose most sales operate outside of their home country?

Answer 2

1. COMPANY: Nestlé, HOME COUNTRY: Switzerland, OVERSEAS SALES AS A PERCENTAGE: 97.8%
2. COMPANY: Vodafone, HOME COUNTRY: Britain, OVERSEAS SALES AS A PERCENTAGE: 88.3%
3. COMPANY: Siemens, HOME COUNTRY: Germany, OVERSEAS SALES AS A PERCENTAGE: 85.3%

Question 3

What are the top three multinational corporations by revenue?

Answer 3

1. Walmart
2. State grid
3. Sinopec group

Question 4

What are LEDC’s?

Answer 4

Less economically developed countries.

Question 5

What are three positives of MNC’s?

Answer 5

• Brings money and economic growth into that country
• Helps LEDC’s to advance
• Improves standard of living in LEDC’s

Question 6

What are three negatives of MNC’s?

Answer 6

• Exploits workers in LEDC’s
• Profits are transferred out of the country, instead of being used to boost economy in those LEDC’s
• Only provide menial (bad) work for local residents.