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Define a multinational company - How might a company gain by becoming a multinational? If a country is successful in attracting a multi-national, what effect might this have on its economy?
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Many governments try to persuade multinational companies to build plants or factories in their countries. They offer the companies investment grants and reduce taxation on profits for a period. a) Define a multinational company. [2] b) How might a company gain by becoming a multinational? [8] c) If a country is successful in attracting a multi-national, what effect might this have on its economy? [8] d) What disadvantages might a county experience if it encourages the expansion of a multinational? [8] A multi-national company, or commonly known as a MNC, is a firm that operates in more than one country, with a headquarters in one particular country. These companies are usually among the largest firms in the world, often selling billions of dollars worth of goods and services, and employing hundred thousands of workers across the globe. The profit and income flows that they generate can reach well into billions of pounds per year Multinationals...
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