CS - Nokia MNC

Question 1

Why has Nokia located its operations in various countries?

Answer 1

It has branches in many countries to reduce costs which makes their profits higher

They’ve also done this to move their branches closer to the customers

They do this by opening factories in countries in the world that have:

Low labour costs
Cheap land or building costs
Low business rates (tax)

Question 2

How does opening branches in different countries help with the employment of Nokia’s staff?

Answer 2

Opening branches in many countries allows for the employment of higher qualified people in MEDC’s and less qualified assembly workers in LEDC’s

Question 3

What are the local impacts of the construction of Nokia’s assembly factories?

Answer 3

Pollution

Jobs for local people in which they can learn new skills
Development of local infrastructure

Question 4

What are the national impacts of the construction of Nokia’s assembly factories?

Answer 4

Pollution in lakes and rivers

Development of new energy projects such as dams etc

Question 5

What are the regional impacts of the construction of Nokia’s assembly factories?

Answer 5

By manufacturing in Europe Nokia can avoid paying tariffs in the EU

Improvement of the quality of life for the people living in the area