Globalisation (04)

Question 1

SUMMARY

Answer 1

In summary, the following are covered in this topic:
1. Multinational businesses refer to businesses that are headquartered in one
country, but with operating branches and factories in other countries.
2. Businesses may decide to set up operations in other countries due to benefits
such as proximity to key markets, lower costs of productions, to avoid import
restrictions or simply due to the availability of natural resources in these
countries.
3. Multinational businesses are important to the global economy as they promote
technological advancements, globalisation and economic integration.
4. Multinational businesses bring about both benefits and costs to host countries.
5. Due to globalisation, a major event such as natural disasters or labour strikes,
in one country could have major impact on businesses in another country.