1.6 Multinational Companies

Question 1

What are multinational companies

Answer 1

they are business organizations that operates in 2 or more countries, with a head office in 1 country and physical business operations such as factories and offices in another country.

Question 2

What are the positives of multinational companies

Answer 2

• it creates jobs: higher employment
• supports local businesses: it buys raw materials from local suppliers
• consumer variety: customer get better products with more options

Question 3

what are negatives of multinational companies

Answer 3

• harms local businesses: smaller firms may lose customers
• exploitation: poor working conditions, lower wages and damage the environment eg: polluting