Multinational Companies

What is multinational corporations ?

• a company that is primarily based in more than one country

• a company that is primarily based in one country

• a company that is primarily based in some countries

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CCSS.RI.11-12.4

CCSS.RI.9-10.4

CCSS.RI.9-10.4

CCSS.RI.8.4

CCSS.RI.7.4

A multinational corporation operates in

• A complex business environment

• A simple business environment

• A difficult business environment

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CCSS.RI.11-12.8

CCSS.RL.11-12.8

CCSS.RL.9-10.7

CCSS.RI.9-10.7

CCSS.RI.8.7

International corporations have ....... rapidly

• been

• grown

• gone

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CCSS.RI.11-12.10

CCSS.RI.9-10.10

CCSS.RI.8.10

CCSS.RI.7.10

CCSS.RI.6.10

A multinational corporation operates in a ...... businesss environment.

• complex

• difficult

• basic

Tags

CCSS.RL.11-12.4

CCSS.RI.11-12.4

CCSS.RL.9-10.4

CCSS.RI.9-10.4

CCSS.RI.8.4

Why do companies decide to be multinational

• Entering a new country gives the business a new market

• To reduce production costs

• Gain trade barriers

• To completely avoid tax liability

What is repatriation of profits

• The transfer of corporate money from a foreign country

• A fancy way of saying debt

• Management of large amounts of money from an outside country

What are the advantages of a MNC

• Creates jobs and wealth for other countries

• Size allows them to benefit from economies of scale

• Large and new market

Disadvantages of MNC

• Loss market share if they expand too quickly

• Push out small local businesses

• Too little profit by giving away too much promotions

The keyword Multinational means

• In one country

• In every country

• In more than one country

Which of the following is NOT a key feature of MNCs?

• A large amount of assets, including both capital and money

• Access to highly qualified managers and professionals

• Limited influence over government decision making

• An ability to exploit economies of scale and lower average costs with expansion

• Significant advertising and marketing budgets