1.6 Multinational companies

MNC - Multinational companies - companies that operate in two or more countries.

MNC pros

access to more customers so increased sales

economies of scale

risks are spread internationally

MNC cons

language barrier

culture shock

high transportation costs

MNC positive impact on host countries

increases jobs and decreases unemployment

introduces new products and skills

increases competition

adds to their GDP

MNC negative impact on host countries

uses it limited resources

may drive out local businesses

hard to control their activities

Tariff - taxes on imported goods

Quota - limits on value or volume of imported goods

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