Edexcel-Controlling MNCS 4.4 Flashcards
Political influences
Enforce laws and regulations.
What should MNCS do when they establish themselves in a new country?
Work with the institutional framework of the country.
What do MNCS do in developed countries?
Extert pressure on governments through lobbying
Influence Governments by establishing deals.
Legal control
Governments can enforce legislation and regulation to control the operations of MNCs.
What does the EU have?
Competition commission
Competition commission
protects producers and consumers from anti-competitive or unfair practices.
What do governments do to attract MNCS?
creating legal control in areas relating to taxes and employment ensures stability for the MNCS.
Pressure groups
organisations that operate to influence company and public policy in the interest of a particular cause.
Pressure groups example
Greenpeace
Pressure groups can take action by:
Naming and shaming
direct action(Protests)
lobbying
What pressure group works on behalf of MNC’s?
Confederation of British Industry
MNCS positive
spread awareness and promote their business on a global scale.
MNCS negative
enables stakeholders to freely share information about the unethical behaviour of MNCs
MNCS limited power
some countries as they have regulations in place to manage social media power.
MNCS limited power example
China
