1.6 Multinational Companies

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5 Terms

1
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Multinational Company

An organisation that operates in 2 or more countriws, usually with its headquarters based in its home country. Transnational corporation

2
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Reasons to become an MNC (6)

  • increased customer base

  • cheaper production costs

  • Economies of scale

  • Brand development and Brand value

  • Avoid Protectionist policies

  • Spread risks

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Host Country 

Any country that the MNC has set up operations in 

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+ve impacts of an MNC on it’s home country (4)

  • Job creation 

  • Higher national income 

  • Knowledge and technology transfer 

  • increased competition 

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-ve impacts of an MNC on it’s host country

  • Reparation of profits

  • Vulnerability

  • Social responsibility

  • Competitive pressures for domestic biz