the importance and growth of multinational companies

Question 1

how much to MNCs contribute to the worlds GDP

Answer 1

10%

Question 2

how much do MNCs contribute to global exports

Answer 2

60%

Question 3

How many MNCs where there 2005 compared to 1970

Answer 3

1970 there were 7000 and in 2005 there 78000

Question 4

How many workers do MNCS employ globally

Answer 4

70 million, 3% of the global workforce

Question 5

How have MNCs developed (3)

Answer 5

Economies of Scale
Marketing
Advantages in tech and finance

Question 6

what are the benefits of becoming an MNC

Answer 6

HALLL
Larger Customer base
Lower costs
higher public profile
avoiding trade barriers
low taxes

Question 7

benefits of a country because of MNCS (6)

Answer 7

TETHEE
employment increased
tax revenue increased
exports increased which increases a nations currency reserves
transfer of tech as mncs often supply foreign and domestic suppliers with help and training
human capital imporved bc training etc
enterprise improvement, arrival of an mnc encourages ppl to start mainteneance, accomodation, transport businesses

Question 8

what are the drawbacks of a MNC to a country

Answer 8

environmental damage
exploitation of less developed countries like encouraging the production of primary products whos prices can change sharply causing unstable income, counties also may rely on MNCs too much for production at the expense of developing their secondary and tertiary sectors
repatriation of profits
lack of accountabilit bc they are so powerful ie evading law and tax

Question 9

what is repatraition if profit

Answer 9

when a MNC returns the profit from an overseas venture to the host country usually from less developed to developed