why would a business want to become an MNC

Question 1

so that the business can dominate the global market.

Answer 1

would allow them to greatly increase their market share across the world and create a global brand

Question 2

can utilise cheap labour and materials in different countries

Answer 2

reduce cost of production making the MNC more profitable

more competitive as can pass on savings to customers

Question 3

can influence governments and enter markets protected by trade tariffs

Answer 3

allows business to avoid import tariffs and taxes.

shipping costs reduced as production facility close to the market

Question 4

because of exponential growth of the internet

Answer 4

allows customers all across the world to purchase products from the business

Question 5

no more space to grow…

Answer 5

as they have saturated their home market and so they have to look abroad in order to expand