The+Impact+Of+Multi-National+Companies+IGCSE：+冲击+ +民族+公司+标准.pptVIP

The Impact Of Multi-National Companies Multinational/Transnational Multi-national or Trans-national companies are ones which locate their factories throughout the world. This gives them many benefits, such as access to the world market, cheap labour, cheaper production costs, and therefore greater profits. The headquarters of the company remains in its original country, usually one of the most developed countries in the world, such as the UK or USA. They then have factories throughout the world, which either make parts or entire finished products for the company to sell on the world market. It’s All About The Money Most of the largest multi-national companies are oil companies such as BP and Exxon (Esso), as well car companies (for example, Ford, Toyota, Nissan and Volkswagen). Other well-known companies such as Coca-Cola, IBM and Sony are also defined as being multi-national. Multi-national companies locate around the world for their own benefit - in other words - to make as much money as possible. They bring with them both advantages and disadvantages for the country that plays host to them. How Multinationals Affect Host Countries Investment: Advantages: The companies bring much needed money into the country. Although most of their profits do return to the companys country of origin, the local economy does benefit. Disadvantages: The wages paid to local workers are often low and some companies have been accused of exploiting the local workforce rather than benefiting it. There are often tax incentives for these companies to locate in countries in the Developing World. This added to the fact that they take most of their profits out of the country, means that the actual economic benefit to the country could be minimal. How Multinationals Affect Host Countries Technology: Advantages: The companies help the development of the country by bringing in technology and knowledge that the host country does not possess. Disadvantages: Unless the company actively partici