the impact of MNCS

Question 1

what is a multi-national corporation

Answer 1

a company that owns or controls production or service facilities in more than one country
- has a central head office that coordinates operations
- achieved through FDI

Question 2

why do businesses operate as MNCS?

Answer 2

• domestic saturation = seek new markets
• cheaper production = offshoring (labour, tax rates, legislations)
• access to resources
• economies of scales