4.4 Global industries and companies (multinational corporations)

Question 1

3 impacts of MNCs on the local economy

Answer 1

• local labour, wages, working conditions and job creation
• local businesses
• the local community and environment

Question 2

6 impacts of MNCs on the national economy

Answer 2

• FDI flows
• balance of payments
• technology and skills transfer
• consumers
• business culture
• tax revenues and transfer pricing

Question 3

2 environmental considerations

Answer 3

• emissions
• waste disposal

Question 4

2 supply chain considerations

Answer 4

• exploitation of labour
• child labour

Question 5

2 marketing considerations

Answer 5

• misleading product labelling
• inappropriate promotional activities

Question 6

4 factors to consider in relation to controlling MNCs

Answer 6

• political influence
• legal control
• pressure groups
• social media