History of Multinational Companies (video) Flashcards

1
Q

birth of multinational companies

A

1861

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2
Q

when did multinational companies become popular

A

after second world war

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3
Q

where did large number of multinational companies emerge

A
  • Europe
  • Japan
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4
Q

example of developing country with number of multinational companies

A

South Korea

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5
Q

multinational company owns and manages what

A

business in two or more countries

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6
Q

owns and manages business in two or more countries

A

multinational company

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7
Q

“the essential management of the multinational organizations lies in one country and they carry out their business in umber of other countires”

A

International Labour Organisation report

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8
Q

what do multinational companies have

A

large-scale assets and transactions

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9
Q

multinational companies operate their business in at least __ countries

A

6

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10
Q

multinational companies have a __ __ on the business from their __ __

A
  • centralised control
  • head office
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11
Q

what do multinational companies provide to the countries where thay oeprate their business

A

technological facilities

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12
Q

multinational companies play a vital role where

A

international trade

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13
Q

what do multinational companies procure in host countries

A

raw materials

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14
Q

how do multinational companies help their home country

A

get foreign exchange

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15
Q

required for operation of multinational companies

A

technological and administrative skills

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16
Q

what do multinational companies export

A

raw materials and finished goods

17
Q

multinational companies can earn profit and royalty through what

A

administrative agreement with host countries

18
Q

multinational companies create more opprotunities for __ in the home country

A

employment

19
Q

how are host countreis benefited

A
  1. increase in capital investments
  2. exporting more and importing less
  3. utilization of internal resources
20
Q

if host country is developing, home country can what?

A

provide technological and administrative support

21
Q

what does the provision of technological and administrative support do

A

revolutionises the production in host countries

22
Q

what is made possible by multinational companies

A

standard quality products in all host countries

23
Q

what is increased in host countries

A
  1. employment opportunities
  2. new innovations
  3. developed skills
24
Q

disadvantages of multinational companies

A
  1. home country gets lion’s share of profit
  2. create dominance to host countries
  3. competition in host countries may vanish and monopoly may get established
  4. reduction in natural resources of host countries
  5. disrespect human rights and follow corrupt methods to avoid paying taxes
  6. exploit labor force in host countries
  7. interfere in political affairs
25
Q

restricted the foreign investment to Indian government

A

industrial policy of Indian government

26
Q

allows the many multinational companies to operate in India

A

Economic liberalisation policy of India in 1991

27
Q

example of multinational companies in India

A
  • WIPRO
  • Infosys