1.6 Multinational Companies

studied byStudied by 1 person
0.0(0)
Get a hint
Hint

What is a multinational company (MNC)?

1 / 8

encourage image

There's no tags or description

Looks like no one added any tags here yet for you.

9 Terms

1

What is a multinational company (MNC)?

an organization that operates in two or more countries

New cards
2

What is a transnational corporation?

head offices in other countries

New cards
3

Why have MNCs grown considerably over time?

benefits of being such super-sized businesses

New cards
4

Why do businesses become MNCs?

  • increased customer base

  • cheaper production costs (inexpensive labor)

  • economies of scale

  • brand development and brand value

  • avoid protectionist policies

  • spread risks

New cards
5

What is a host country?

any nation that allows a multinational company to set up in its country

New cards
6

Positive impacts of MNCs on host countries:

  • Job creation

  • Higher national income

  • Knowledge and technology transfer

  • Increased competition to incentivize local firms to be more efficient

New cards
7

Negative impacts of MNCs on host countries:

  • Job losses

  • Repatriation of profits

  • Vulnerability

  • Social responsibilities

  • Competitive pressures

New cards
8

What are trade protectionist policies?

promotes/boosts domestic products in the country + imposes tariffs/limits on foreign goods + services in the marketplace

New cards
9

What is gross domestic product (GDP)?

total monetary/market value of all the finished goods + services produced within a country’s borders in a specific time period

New cards

Explore top notes

note Note
studied byStudied by 46 people
... ago
5.0(2)
note Note
studied byStudied by 65 people
... ago
5.0(4)
note Note
studied byStudied by 217 people
... ago
4.8(4)
note Note
studied byStudied by 20 people
... ago
5.0(1)
note Note
studied byStudied by 4 people
... ago
5.0(1)
note Note
studied byStudied by 15 people
... ago
5.0(2)
note Note
studied byStudied by 2072 people
... ago
4.9(8)

Explore top flashcards

flashcards Flashcard (28)
studied byStudied by 1 person
... ago
5.0(1)
flashcards Flashcard (77)
studied byStudied by 4 people
... ago
5.0(1)
flashcards Flashcard (20)
studied byStudied by 326 people
... ago
4.4(16)
flashcards Flashcard (21)
studied byStudied by 101 people
... ago
4.0(1)
flashcards Flashcard (26)
studied byStudied by 2 people
... ago
5.0(1)
flashcards Flashcard (192)
studied byStudied by 15 people
... ago
5.0(1)
flashcards Flashcard (41)
studied byStudied by 36 people
... ago
5.0(1)
flashcards Flashcard (123)
studied byStudied by 342 people
... ago
5.0(5)
robot