Scribd Logo
Upload

Welcome to Scribd!

  • MUltinationals

    Uploaded by

    elena.mc666
    4 views1 page
    Multinational companies operate in more than one country for reasons like accessing larger customer bases, increasing their brand recognition, taking advantage of technological progress, and benefiting from tax incentives and avoiding trade barriers. They can also lower production costs through cheaper labor and less regulation. While they provide employment, skills and technology transfers, and infrastructure to host countries, they may not create safe or well-paying jobs, could exploit workers and damage the environment if regulations are weak, drive up prices, and harm local businesses through an unfair advantage, potentially creating monopolies and shifting culture towards international products.

    Original Description:

    Business Management IB

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    Multinational companies operate in more than one country for reasons like accessing larger customer bases, increasing their brand recognition, taking advantage of technological progress, and benefiting from tax incentives and avoiding trade barriers. They can also lower production costs through cheaper labor and less regulation. While they provide employment, skills and technology transfers, and infrastructure to host countries, they may not create safe or well-paying jobs, could exploit workers and damage the environment if regulations are weak, drive up prices, and harm local businesses through an unfair advantage, potentially creating monopolies and shifting culture towards international products.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    4 views1 page

    MUltinationals

    Uploaded by

    elena.mc666
    Multinational companies operate in more than one country for reasons like accessing larger customer bases, increasing their brand recognition, taking advantage of technological progress, and benefiting from tax incentives and avoiding trade barriers. They can also lower production costs through cheaper labor and less regulation. While they provide employment, skills and technology transfers, and infrastructure to host countries, they may not create safe or well-paying jobs, could exploit workers and damage the environment if regulations are weak, drive up prices, and harm local businesses through an unfair advantage, potentially creating monopolies and shifting culture towards international products.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    MULTINATIONAL

    COMPANIES
    operations located
    in more than one
    country

    Reasons
    larger customer base
    brand recognition increase
    technological progress facilitates growth
    tax incentives: low taxes to attract MNCs
    avoiding trade barriers: they won’t pay border fees if
    their operations are already in that country
    lower cost of production such as labour cost
    lack of labour and environmental regulation
    spreading risks in case they fail in one country

    Positive impact on host country


    employment opportunities: their wages go to economy
    transfer of skills and technology to local economy
    local businesses become direct suppliers of input
    infrastructure created can benefit community
    more product choice if sold in host country
    taxes on exported goods

    Negative impact on host country


    jobs created may not be safe, permanent or well paid
    company might exploit workers
    damage environment if regulations are weak
    demand increase can drive up prices
    local businesses don’t have as much access to finance so
    they could disappear and create a monopoly.
    shift towards international products might harm culture

    You might also like