MNCs

Question 1

What are MNCs

Answer 1

Large companies that have operation and economic activity in more than one country

Question 2

Often where are the headquarters and the manufacturing based for these companies

Answer 2

Headquarters: More developed countries
Manufacturing: Less developed countries
Globalisation has aided this

Question 3

How can the government stimulate tertiary growth

Answer 3

Investment from foreign MNCs

Question 4

How does the UK attract foreign MNCs

Answer 4

• Reduced corporation tax to 20% in 2015
• Reduced R and D tax (Quaternary sector)
• High investment in STEM education
• High quality of life for moving staff

Question 5

Give an example of a foreign MNC moving to an area and stimulating the economy

Answer 5

• Sunderland had significant coal, mining and ship building industry
• These industries decline unemployment rates went up
• Government implemented polices which meant reduced tax
• Nissan set up factories in the area, reducing unemployment, investing £3.5 billion
• Most efficient car factory in Europe
  (1 car every 33 seconds)