multinational companies Flashcards

1
Q

What are multinational companies?

A

Multinational companies are companies are companies that have managements that are spread between different countries.

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2
Q

Explain host country and Parent country.

A

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.

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3
Q

Advantages of being multinational.

A

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.

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4
Q

Advantages of multinational companies to the host country.

A

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.

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