Unit 1.6 Multinational companies

Question 1

multinational company

Answer 1

operates in multiple countries, conducting business activities, and having a physical presence, subsidiaries, or affiliates in various regions around the world.

Question 2

Transnational corporations

Answer 2

is a large multinational company that operates in multiple countries, conducts business across borders, and has a significant presence and influence in various regions of the world. Transnational corporations typically have global operations and a centralized management structure

Question 3

reasons businesses strive to be MNC’s

Answer 3

• increased cusrtomer base
• cheaper production costs
• economies of scale
• brand development
• brand value
• protectionist policies
• spread risks

Question 4

protectionist policies

Answer 4

Protectionist policies are rules set by a government to protect businesses in its own country from competition with foreign businesses. These rules can include taxes on imports or limits on the amount of foreign goods that can be sold in the country.
tarrifs
quotas
restricted trade practices

Question 5

impact of MNCs on the host country

Answer 5

• job creation
• higher national income
• knowledge and technology transfer
• increased competition

Question 6

interrelative drawbacks MNC’s have on host countries

Answer 6

• job losses
• repatration of profits
• vunerability
• social responsibilities
• competitive pressure

Question 7

gross domestic products

Answer 7

value of a countrys annual output or national income