1.6 Multinational Companies | Quizlet

Multinational Corporation (MNC)

A company that operates in two or more countries. It is generally a very large company, but it does not have to be. MNC's are also sometimes referred to as multinational enterprises (MNEs).

Globalization

The process by which the world's regional economies are becoming one integrated global unit.

Factors for Multinational Growth

Better communication

Removal of trade barriers

Financial market deregulation

Growing economic and political influence

Host Country

where a multinational company operates, but which is not the company’s home country. It is where the business sets up production, distribution, or sales facilities outside its main base.

Host Country Advantages

Economic growth

New ideas

Skills transfer

Greater choice of products

Short-term infrastructure projects

Host country disdvantages

Profits going to home country

Loss of cultural identity

Brain drain

Loss of market share

Short-term plans