MULTINATIONAL CORPORATIONS (MNSs) Flashcards
1
Q
What is a multinational corporation (MNSs)
A
A multinational corporation (MNC) is a business that has operations outside of the country in which they are headquartered.
2
Q
What are factors driving internalisation
A
Access to low cost labour
Be closer to suppliers
Access new skills
Gain economies of scale
Avoid protectionism and tariff barriers
3
Q
What are the pros of multinational companies
A
Spread risk that company faces in one market
Bring investment to a country - may include new technology and skills
Are a source of employment
Require a supply chain
More choice for consumers
4
Q
A
