Multinational businesses



Multinational businesses

Businesses that have their headquarters in one country but operating branches, factories and assembly parts in others

More than exporters/importers they produce g&S in more than one country.

Advantages

  • Nearness to markets: lower transport costs, better market information regarding consumer tastes.
  • Lower costs of production: tax incentives, government grants, low labour rates, cheap rent and site costs
  • Avoid import restrictions
  • Access to local resources

Problems

  • Poor communication
  • Language and culture, misunderstanding
  • Coordination needs to be monitored
  • Skill levels must be low





Rating 3.00 out of 5


Leave a Reply