History of Multinational Companies (video) Flashcards
birth of multinational companies
1861
when did multinational companies become popular
after second world war
where did large number of multinational companies emerge
- Europe
- Japan
example of developing country with number of multinational companies
South Korea
multinational company owns and manages what
business in two or more countries
owns and manages business in two or more countries
multinational company
“the essential management of the multinational organizations lies in one country and they carry out their business in umber of other countires”
International Labour Organisation report
what do multinational companies have
large-scale assets and transactions
multinational companies operate their business in at least __ countries
6
multinational companies have a __ __ on the business from their __ __
- centralised control
- head office
what do multinational companies provide to the countries where thay oeprate their business
technological facilities
multinational companies play a vital role where
international trade
what do multinational companies procure in host countries
raw materials
how do multinational companies help their home country
get foreign exchange
required for operation of multinational companies
technological and administrative skills
what do multinational companies export
raw materials and finished goods
multinational companies can earn profit and royalty through what
administrative agreement with host countries
multinational companies create more opprotunities for __ in the home country
employment
how are host countreis benefited
- increase in capital investments
- exporting more and importing less
- utilization of internal resources
if host country is developing, home country can what?
provide technological and administrative support
what does the provision of technological and administrative support do
revolutionises the production in host countries
what is made possible by multinational companies
standard quality products in all host countries
what is increased in host countries
- employment opportunities
- new innovations
- developed skills
disadvantages of multinational companies
- home country gets lion’s share of profit
- create dominance to host countries
- competition in host countries may vanish and monopoly may get established
- reduction in natural resources of host countries
- disrespect human rights and follow corrupt methods to avoid paying taxes
- exploit labor force in host countries
- interfere in political affairs
