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