4.4

Question 1

MNCs

Answer 1

Company who has operations in multiple countries.

Question 2

Impacts of MNCs

Answer 2

+more jobs, higher wages as big MNCs have money behind them.
+transferable skills, training and tech = higher standard.
-local businesses pressure (can’t keep up with wage increases, lose staff.)
-environmental affects (big factories releasing co2.)
-cultural impacts ( culture diluting e.g mc Donald’s in Italy, may decrease tourists as see same shops as home country.)

Question 3

Global ethics

Answer 3

Low wages and working conditions- is it unethical to lower wages for different countries or is it just adapting to local levels? Working cottons may be lowered due to lower legislation.
Environment - emissions and overextracrion of natural resources.
Labour- child labour and slavery, is gov responsible or business.

Question 4

Porters generic strategies

Answer 4

Low cost and broad market - achieve lowest costs through economies of scale , not profit.
Differentiation in broad market, unique reduce ped.

Question 5

Exchange rates

Answer 5

Foreign to pounds = F/ exchange rate

Pounds to foreign = pounds x exchange rate