Revision lesson 2 - paper 3 Flashcards
What does retail refer to
Sales of goods directly to consumers
What is a multi national corperation
Operate in multiple countries, managing production or delivering services
What is an independent retailer
Privately owned retailers who operate separately from larger retail chains
What are some benefits of being an independent retailer
Can feature whatever products they like, complete creative control over the business
What are some drawbacks of being an independent retailer
Does not have the scale of the marketing budget of MNC’s, cannot cover staff shortages, does not have brand loyalty
What is the effect of MNCs on local economies
Provide jobs, improve labour conditions, good wages
What is the effect of MNCs on local businesses
MNCs dominate local markets, overshadow smaller businesses, cannot compete with economies of scale
What is the effect of MNCs on local communities and the environment
Increased traffic and energy consumption, effected local infrastructure, contribute to pollution
Why might there be conflict between stakeholders from the operation of MNCs
Government may have laws that may conflict with MNC, control over businesses
What does pay and working conditions refer to in ethics
Low wages, limited benefits, long hours without employee protection
What does misleading product labelling refer to in ethics
Consumers may be led to believe they are purchasing a unique or collectable item due to a lack of clear distinctions about the product
What are 4 ways to control MNCs
Political influence, legal controls, pressure groups, social media
What is political influence as a method of controlling MNCs
Products may be banned, illegal services are prohibited, retailers must adhere to legislation to continue trade
What is legal controls as a method of controlling MNCs
Strict legal measures e.g consumer protection laws, can be investigated for unfair pricing tactics
What is pressure groups as a method of controlling MNCs
Persuade investigations to take place, smaller unions can fight to end MNC domination
What is social media as a method of controlling MNCs
Comments can make MNCs change approach, truth revealed through past employees
