Multinationals are organizations headquartered in one country that operate in two or more other countries. They have advantages like taking advantage of grants, increasing market share, and cutting costs through cheaper labor. However, they also have disadvantages like paying tax in multiple countries and ensuring they observe local traditions. For the countries they operate in, multinationals can create jobs and introduce new technologies, but can also have too much influence and send profits back to their home country. The document provides an outline for a task analyzing a specific multinational company in terms of its profile, reasons for being multinational, and advantages/disadvantages for the company and countries it operates in.

1. MULTINATIONALS

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.