Multinationals Flashcards
what is a multinational
a business that operates in at least one country. multinationals have a HQ in one country, but has bases like manufacturing plants in host countries
what are the key features of a multinational
operations in several countries
distinct home base country
achieved global brand
can dominate markets across many countries
greatly influence local economies
why would a business want to become a multinational
increased market share
cheaper labour and production
avoid or reduce tax
save costs of transportation
what negatives do multinationals bring to the company
cultural variations
high transport costs
can be difficult to control
what positives do multinationals bring to host countries
nea jobs and income, increasing standard of living
country has greater access to products/services
improves levels of expertise of local workers
what negatives do multinationals bring to host countries
jobs provided low skilled
dominance of large multinationals can close local businesses
multinational control over host country
