Theme 4.4 Global industries and companies (mulinational corporations)🏷️

What is balance of payments?

A record of all transactions associated with imports and exports and all international capital movements.

What are FDI flows?

The transfer of funds by an MNC to purchase and acquire physical assets such as factories or machines.

What is a MNC?

Multi National Company. A business that operates in more than one country.

What is transfer pricing?

A system operated by MNC’s. It is an attempt to avoid relatively high tax rates through the prices which one subsidiary charges another for components and finished goods.

What is child labour?

The employment of children to undertake business activity.

What are emissions?

A substance that is produced and sent out into the air that harms the environment.

What is exploitation of labour?

When an agent takes advantage of another agent e.g an employer abusing an employee.

What are supply chain considerations?

The way a business treats and monitors the labour involved in the production of raw materials, components and services.

What is sustainability?

When a business is able to meet present needs without damaging or compromising the needs of the future.

What is waste disposal?

The process of getting rid of unwanted materials.

What is competition policy?

Government polices that exists to promote competition and ensure that firms don’t abuse their market power, do not attempt to fix prices or use pricing strategies to drive out competition.

What is tax avoidance?

Using legal methods to reduce the amount of tax that a company pays.

What is tax evasion?

Using illegal methods to avoid paying taxes that are owed.

What is the WTO?

World Trade Organisation - supervises world trading arrangements and trade negotiations and promotes the benefits of free trade.