Multinational Corporations

Question 1

Why are multinational corporations successful?

Answer 1

Multinational corporations are so successful because they are able to establish themselves worldwide and make a profit.

Question 2

If they are selling what do they have to ensure in order for their product to be successful?

Answer 2

Their product can be sold in that country.
Their product is affordable.
Their product is wanted.

Question 3

If they are making what do they have to ensure in order for their product to be successful?

Answer 3

• They can get the materials cheap.
• They can get cheap labour
• There is good transport for their product.
• The government won’t charge too much tax.

Question 4

What are you looking for in a country to build factories for a multinational corporation?

Answer 4

Does the country have good transport?
Will people work in my factory?
Will I make a profit if I build my company here?
Will the government support my business?
Will I be able to sell my product easily?

Question 5

Advantages of multinational corporations setting up in developing countries

Answer 5

They provide trade links with other countries
They improve roads, airports and services
They improve education and work skills

Question 6

Disadvantages of multinational corporations setting up in developing countries

Answer 6

Most of the profits made go overseas
Companies may pull out at anytime
Products made are often of little value to local people