Multinational Corporations (AQA A-Level Business): Flashcards
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Practise the cards
10 cards from this deck
Multinational corporation (MNC)
Multinational corporation (MNC)
Business with operations in multiple countries
MNC key characteristic
MNC key characteristic
Head office coordinates all global activities
Foreign Direct Investment (FDI)
Foreign Direct Investment (FDI)
MNC investment building physical assets in host country
MNC employment benefit (developing countries)
MNC employment benefit (developing countries)
Creates job opportunities for local populations
Tax revenue from MNCs (examples)
Tax revenue from MNCs (examples)
Land, wages, profits, exports
Sweatshops
Sweatshops
Factories with long hours, poor conditions, minimal pay
Why MNCs use child labour
Why MNCs use child labour
Less strict employment laws reduce costs
EU advantage for MNCs
EU advantage for MNCs
Sell to all EU countries without import tax
Transfer pricing
Transfer pricing
Moving profits between countries to reduce tax paid
Harmonisation (EU)
Harmonisation (EU)
Standardising employment laws across member states