controlling MNCS Flashcards
who try to control activties of MNCS
governement
what two ways can government attempt to control MNCS
legal control (changing the law)
changing policies (political influences)
government can change the law to control MNCs
governments can change tariffs and quotas-e.g might increase tariffs on imports of raw materials to encourage MNCs to use the resources within the country
include employment laws that enforce mmimumun wages, consumer laws that ensure products safety standards are mer
might have laws on competition to prevent an MNCs reating a monoploy in the host counrty
dis of legal control on controlling MNCS
may lead to conflicts between counteries with different laws
govemernets cna have political infleunces on MNCS
may use subsidies, grants or low rates of tax to persude a MNCS to their country
pressure groups
groups of epople that want to change government policies or the behaviour of businesses
social media
makes it easy to post
adv-as tredning, lodas likely to see it
dis-trends are consistently changing so may not be useful in long term
