MNCs

Question 1

what advantages do MNCs give to a country

Answer 1

increased employment
more choices among goods and services
Gives government tax
improves infrastructure

Question 2

what disadvantages do MNCs give to a country

Answer 2

environmental damages
labour exploits
more comptition
possible negative socail impacts

Question 3

what benefits do MNCs have?

Answer 3

lower labour costs
easier access to raw materials
bigger market access
economies of scale

Question 4

what drawbacks are there for MNCs

Answer 4

strict government regulations
language barriers
shortage of labour
hostile business environment

Question 5

what does MNC stand for

Answer 5

multinational company

Question 6

what is inward investment

Answer 6

when a foreign company invests in a country

eg. building a factory in said country

Question 7

why do businesses become multinational?

Answer 7

• They can produce goods in countries with low costs, such as low labour costs
• They have access to cheap raw materials that may also be of better quality.

•The can produce their goods closer to their target market, reducing their
transport costs.

•They can avoid trade barriers, such as tariffs or quotas, therefore avoiding high
costs.

•They have access to new target markets, spreading the risks of the business into
different markets.