IB Business SL: Unit 1 - Multinational Companies (1.6)

Foreign direct investment (FDI)

Firm based in one country establishes its presence in another country by providing long term investments.

Host country

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

Globalization

Growing integration & interdependence of economic, social, technical & cultural issues of world's economies.

Gross domestic product (GDP)

Value of a country's annual input or national income.

Multinational company (MNC)

An organization that operates in two or more countries, with its head office usually based in the home country.

Protectionist policies

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

Synergy

When the whole is greater than the sum of the individual parts when two or more businesses are integrated.