international business Flashcards
What is a multinational company?
A company that operates in more than one country.
What is one positive impact of multinationals on host countries?
They provide employment, improving earning potential and quality of life.
What infrastructure developments can occur due to multinational companies?
Improved road, rail, and Wi-Fi access.
How do multinationals benefit local economies?
By needing local suppliers and businesses to service their workforce.
What is a negative effect of foreign multinationals in less developed countries?
They are often accused of exploiting labour.
What issue may arise regarding working conditions in multinational companies?
Workers may be employed under worse conditions than in western factories.
What environmental impact can multinationals have when they move into new areas?
Destruction of natural habitats, including deforestation.
What is a potential wage issue for workers in less developed countries employed by multinationals?
They may be paid less than a living wage.
Why might multinationals offer low wages in developing countries?
Due to the absence of a fixed minimum wage level.
Fill in the blank: Multinational companies aim to work towards a _______.
[global presence]
True or False: Multinational companies always improve local conditions in host countries.
False
