effects of MNCS

Question 1

adv of MNCS on local economies

Answer 1

creates jobs
increases employment
disposable income/wealth

imporevs standards of living-high wages better living conditions

Question 2

dis of MNCS in local economies

Answer 2

exploit its workers/may take adavnatge of less strict laws in the country
increasing health porblems by making them work exceedingly long hours

increase pollution by unsustabilable natural reosucres

Question 3

transfer pricing

Answer 3

defintiin-setting prices between different parts of the MNC
charge high prices to counteries with low tax rate
charge low prices to counteires with high gax rate
having to pay less tax, getting more profit from sales

Question 4

postive effects of MNCS on national economy

Answer 4

creates large FDI flows-money flowing into and out of an economy
increase their balane of payments
improvign their balance sheets

intorduce new skills and technology to work force
when one worker leaves and joins another business. skills are passed on
improving skill of economy

level of entreprenerushsip with imporve as people amy feel they know enough to start their own busiensss

Question 5

dis of mncs on national economy

Answer 5

may force domestic businesses out of competition

may cause money to leave country as MNC MAY SEND PROFITS back to its home country