Controlling Multinational Corporations (MNCs) (Edexcel A-Level Business): Flashcards
📚Flashcards
Practise the cards
10 cards from this deck
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Practise the cards
10 cards from this deck
'Footloose' MNCs
'Footloose' MNCs
MNCs that can relocate easily across borders
4 main methods of controlling MNCs
4 main methods of controlling MNCs
Political influence, legal control, pressure groups, social media
State-owned enterprises (SOEs)
State-owned enterprises (SOEs)
Companies directly owned/controlled by the state/government
Tax avoidance vs tax evasion
Tax avoidance vs tax evasion
Avoidance: legal reduction; Evasion: illegal (criminal offence)
Regulatory arbitrage
Regulatory arbitrage
Exploiting differences between countries' legal & tax systems
Pressure groups
Pressure groups
Voluntary orgs aiming to change political/commercial decisions
Naming and shaming
Naming and shaming
Publicising unethical behaviour to threaten firm's reputation
Competition policy purpose
Competition policy purpose
Promote competition & ensure markets operate efficiently
Local content requirements
Local content requirements
Regulations on minimum domestic content in products/equipment
How social media controls MNC behaviour
How social media controls MNC behaviour
Makes info easier to collect, increases transparency & awareness