4.4.1 The impact of MNCs Flashcards Preview

Edexcel A-Level Business - Paper 1 > 4.4.1 The impact of MNCs > Flashcards

Flashcards in 4.4.1 The impact of MNCs Deck (6)
Loading flashcards...
1
Q

Advantages of being a multinational company

A
  1. Inceased Market Share
  2. May avoid tax or trade barriers
  3. Reap economies of scale
  4. Spreading risk being in different markets around the world
2
Q

Disadvantages of being a multinational company

A
  1. Higher costs
  2. May reach diseconomies of scale
  3. Harder to maintain a good reputation
  4. May lose focus in original markets
3
Q

Ways to control MNCs

A
  1. Introduce trade barriers to discourage MNCs
  2. Implement laws EG:Exploitation of workers
  3. Increase tax rates
4
Q

Advantages to a country of attracting multinationals

A
  1. Inward investment
  2. Importing technology and expertise
  3. Job creation
  4. Improve balance of payments position
5
Q

Disadvantages to a country of attracting multinationals

A
  1. Loss of national identity > loss of culture
  2. Closure of small domestic businesses
  3. Exploitation of workers
  4. Worsen balance of payments if stock is imported
  5. Exploitation of environment
6
Q

What is a Multi-national?

A

A firm that operate in multiple countries