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Multinational HANDOUT

A multinational is a company that does business in many countries, either through standardized products/services or by operating branches overseas from a head office in one country. Multinationals can benefit host countries by creating jobs, introducing new skills and technologies, and making new goods available. However, they may also remove profits overseas, act against host countries' interests, and force local branches to purchase supplies from the head office rather than domestically.

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Marcus McGowan
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99 views1 page

Multinational HANDOUT

A multinational is a company that does business in many countries, either through standardized products/services or by operating branches overseas from a head office in one country. Multinationals can benefit host countries by creating jobs, introducing new skills and technologies, and making new goods available. However, they may also remove profits overseas, act against host countries' interests, and force local branches to purchase supplies from the head office rather than domestically.

Uploaded by

Marcus McGowan
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

A multinational is:

- A company which does business in many countries, but may have a


standardised product or service

or

- A very large firm with a head office in one country and several branches
operating overseas

Advantages of Multinationals

• Investment by multinationals creates jobs for the host country.

• The multinational will introduce new production techniques and managerial


skills.

• New or better goods may now become available in the host country.

Disadvantages of Multinationals

• Profits are returned to the overseas head office.

• The multinational may operate against the interest of the host country.

• The multinational may force its overseas branches to buy supplies from the
head office.

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