multinational company
Post on 19-Jul-2015
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All firms become multinational
ReasonsProduce goods in countries with low cost –low wages
Extract raw materials – from the local places
Produce goods nearer the market – reduce transport costs
Avoid barriers to trade
Expand into different market to spread risks – move to country where sales are rising
Remain competitive
Multinational Business to the country
Advantages DisadvantagesNew Investment Existing Firms in Danger
More Exports Profits Flow out of Country
Fewer Import Often Only Unskilled Jobs Created
Jobs Created Influence the Government & Economy
More Competition Use of Scarce Resources
Taxes Paid to the Government
Multinational Business to the country
Advantages DisadvantagesNew Investment Existing Firms in Danger
More Exports Profits Flow out of Country
Fewer Import Often Only Unskilled Jobs Created
Jobs Created Influence the Government & Economy
More Competition Use of Scarce Resources
Taxes Paid to the Government
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