multinationals

Question 1

definition of multinationals

Answer 1

is a business that has operations in more than one country.

Question 2

advantages

Answer 2

1. may be able to access cheaper raw materials in host countries.
2. may be able to avoid legislation like minimum wage in home countries.
3. may access grants provided by host governments.
4. may be able to avoid quotas by basing themselves in the host country.

Question 3

disadvantages

Answer 3

1. language barriers slow down communication.
2. cultural differences.
3. may be time differences.
4. may have to deal with changes in value of currencies due to fluctuating exchange rates.

Question 4

definition of HOME countries

Answer 4

the head office is usually based in the HOME country,

Question 5

definition of HOST countries

Answer 5

Outlets abroad whether that be shops or production facilities are said to operate in a host country.