2. Multinationals
An organisation with a headquarters in one country
and who operates in 2 or more countries
Multinationals with a head office in the UK are
usually Public Limited Companies (PLC)
3. Advantages to the multinational
Take advantage of government grants
Increase market share
Cut down transport costs
Use cheaper workers and premises
Spread risks
4. Disadvantages to the multinational
Need to pay Tax in more countries
Need to observe religious and native traditions
Need to be aware of legislation in other countries
5. Advantages to the country
Create jobs
Introduce new management techniques
Develop new technologies
6. Disadvantages to the country
Can have too much influence on a government
Profits go back to country of multinationals origin
7. Task
Pick a multinational.
Provide a company profile (ownership, HQ, type of
business, products, main customers, etc.)
Explain why this company is classified as a
multinational.
Discuss the advantages and disadvantages for the
company being a multinational.
Discuss the benefits to the countries that the
multinational is operating in and also the costs.
