Unit 1.6 - Glossary of Key Terms: Multinational Companies (MNCs)

Vocabulary flashcards covering key terms related to Multinational Companies (MNCs), globalization, and economic concepts.

Foreign direct investment (FDI)

Cross-border investment in which a foreign company establishes an ongoing and significant stake (financial interest and degree of influence) in its operations in another economy.

Host country

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

Globalization

The process of greater integration and interdependence of businesses and economies throughout the world.

Gross domestic product (GDP)

A measure of the monetary value of a country’s annual output or its national income.

Multinational company (MNC)

A business that operates in two or more countries or is legally registered in more than one country.

Protectionist policies

Measures imposed by a country to reduce the competitiveness of imports, such as tariffs (import taxes), quotas, and restrictive trade practices.

Synergy

A key benefit of growth through multinational companies that occurs when the whole is greater than the sum of the individual parts, leading to greater output and improved operational efficiency.