multinational companies Flashcards
What are multinational companies?
Multinational companies are companies are companies that have managements that are spread between different countries.
Explain host country and Parent country.
The host country is the country that the multinational company goes into to establish its management.
The Parent country is the country that the multinational company is established in.
Advantages of being multinational.
You will have lower chance of failure due to the many branches of income you have because of the managements set up in different countries.
You can make a name for yourself as a company.
Advantages of multinational companies to the host country.
Multinational companies create employment.
They bring new techniques to production
They pay huge Taxes to the government which can result in good development for the host country.