runover Flashcards
what are MNCS
multinational coorperates
operate in several counteries
branches out or uses departments from diffrent counteries
head office is based in one country, coordinate its global activities to other counteries
adv of MNCS
can create jobs improve empyment for LEDS as have better wokring stdnards and empolyment imporved
loca firms may benefit as
can use tax avoidance for their host country
dis of MNCS
people migght start buyting just from MNCS
forcing domestic firms out of business
PESTLE
political
economical
social
technological
legal
enviromental
exam tip:mentions external infleunecs then mention PESTLE
political
change in goverment pilicay can change how firm behaves
e.g government legislation introducedd charge on single plastic crrier bags
tesco removed these bags from stores
enviormental
increased concern for the enviroment,business may have to alter production processes or packaging
help prevent peopel refusing to do business with firm due to ethical conerns of enviorment
social
chnage in social trends may make business have to alter its product range
e.g increase damnd for healthier foods
technolgoical
may chnage technology if new technology comes in which is more faster and effiecent
legal
changes in legilsation
economical
business reaches resccesion, amount of money/disposable income people have is reduced
business may have toreduce its prices
why is pestle ananlysis used
factors which may make a business change
