Global Industries and Multinational Corporations (Edexcel A-Level Business): Flashcards
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Practise the cards
10 cards from this deck
FDI definition
FDI definition
Overseas business invests to establish/expand facilities abroad
Repatriated profits
Repatriated profits
Profits transferred by MNC back to home country
Balance of payments meaning
Balance of payments meaning
Record of all financial transactions between country & world
Horizontal technology transfer
Horizontal technology transfer
Knowledge spreads across businesses within same industry
Vertical technology transfer
Vertical technology transfer
Knowledge transfer along supply chain (suppliers/customers)
Transfer pricing
Transfer pricing
MNC minimizes tax by exploiting rate differences between countries
Employment multiplier effect from MNCs
Employment multiplier effect from MNCs
Direct jobs + indirect jobs via suppliers & service providers
4 consumer benefits from MNCs
4 consumer benefits from MNCs
More choice, lower prices, improved quality, better living
3 ways MNCs foster entrepreneurship
3 ways MNCs foster entrepreneurship
Accumulated capital, developed skills, MNC encouragement
Reverse engineering
Reverse engineering
Analyzing rival products by disassembly to copy features