MNCs-mr smith

Question 1

balance of payments

Answer 1

difference between money going in and money going out of a business

Question 2

what are the methods to control MNCs

Answer 2

1 political influence
2 legal control
3 pressure groups
4 social media

Question 3

political influence

Answer 3

government can apply pressure to attempt to change behaviour of MNCS
e.g. some MNCs avoiding to pay tax e.g. Starbucks

Question 4

benefits of political influence

Answer 4

governments have degree of influence over them
company often needs support from government
therefore, they have a lot of power

Question 5

drawbacks of political influence

Answer 5

politicians can be bribed
if MNC brings wealth and employment/very powerful
weaker economy may ignore unethical activities
e.g. Brazil

Question 6

legal control

Answer 6

laws
country can introduce laws e.g. reduce pollution, protect children from child labour, employment rights (NMW) , health and safety legislation

Question 7

benefits of legal control

Answer 7

can be put in place at any time
have clear consequences
support worker and consumer rights
backed by legal courts

Question 8

drawbacks of legal contol

Answer 8

MNCs can move to country’s where less laws and restrictions
can afford expensive legal defence

Question 9

pressure groups

Answer 9

organisations which campaign for changes of law
can have strong influence on public opinion and behaviour of MNC
e.g.
WWE

Question 10

drawbacks

Answer 10

not as well funded as other campaigns