Nokia, A Multi-national Company (1)

Question 0

Headquarters and employees

Answer 0

In Helsinki
Has offices and factories all over the world
Employs more than 112,000 people in many different countries

Question 1

What is Nokia

Answer 1

Worlds largest manufacturer of mobile phones
Finish MNC (- sometimes called TNC, trans-national company)

Question 2

How many different countries for:
Research and development?
Factories?
Sales offices?

Answer 2

R&D - 10 countries
Factories - 10 countries
Sales offices - over 150 countries

Question 3

Why do they operate in different regions around the world

Answer 3

Labour costs are lower
Cheap land and building costs
Low business rates
To be closer to customers

Question 4

Why has Nokia expanded so much

Answer 4

People in LEDCs have also become richer so Nokia has been able to expand the company into countries like Asia, Africa and South America

Question 5

Advantages of MNCs

Answer 5

More jobs available

Jobs stimulate extra work for local companies - multiplier effect

Question 6

Disadvantages of MNCs

Answer 6

Higher trained people are in MEDCs, so there is lower pay and lower skilled jobs for people in LEDCs
Company may move if they find somewhere else cheaper

Question 7

Direct employment opportunities

Answer 7

UK - R&D
Finland - decisions on product
USA - advertising & marketing

Question 8

Indirect employment

Answer 8

SIM cards made in Taiwan and Singapore
Coltan from Congo
Coltan made to metal in Australia
Batteries from China