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1、TheImpactOfMulti-NationalCompaniesMultinational/TransnationalMulti-nationalorTrans-nationalcompaniesareoneswhichlocatetheirfactoriesthroughouttheworld.Thisgivesthemmanybenefits,suchasaccesstotheworldmarket,cheaplabour,cheaperproductioncosts,andthereforegreaterprofits.Theh
2、eadquartersofthecompanyremainsinitsoriginalcountry,usuallyoneofthemostdevelopedcountriesintheworld,suchastheUKorUSA.Theythenhavefactoriesthroughouttheworld,whicheithermakepartsorentirefinishedproductsforthecompanytosellontheworldmarket.It’sAllAboutTheMoneyMostofthelargest
3、multi-nationalcompaniesareoilcompaniessuchasBPandExxon(Esso),aswellcarcompanies(forexample,Ford,Toyota,NissanandVolkswagen).Otherwell-knowncompaniessuchasCoca-Cola,IBMandSonyarealsodefinedasbeingmulti-national.Multi-nationalcompanieslocatearoundtheworldfortheirownbenefit-
4、inotherwords-tomakeasmuchmoneyaspossible.Theybringwiththembothadvantagesanddisadvantagesforthecountrythatplayshosttothem.HowMultinationalsAffectHostCountriesInvestment:Advantages:Thecompaniesbringmuchneededmoneyintothecountry.Althoughmostoftheirprofitsdoreturntothecompany
5、'scountryoforigin,thelocaleconomydoesbenefit.Disadvantages:Thewagespaidtolocalworkersareoftenlowandsomecompanieshavebeenaccusedofexploitingthelocalworkforceratherthanbenefitingit.ThereareoftentaxincentivesforthesecompaniestolocateincountriesintheDevelopingWorld.Thisaddedt
6、othefactthattheytakemostoftheirprofitsoutofthecountry,meansthattheactualeconomicbenefittothecountrycouldbeminimal.HowMultinationalsAffectHostCountriesTechnology:Advantages:Thecompanieshelpthedevelopmentofthecountrybybringingintechnologyandknowledgethatthehostcountrydoesno
7、tpossess.Disadvantages:Unlessthecompanyactivelyparticipatesinaprogramtoeducatelocalcompaniesinthenewtechnologies,thecountry'sindustrywillnotreallybenefit.Multi-nationalcompaniesmightbeworriedbysharingtoomuchinformation,astheycouldfindthemselveswithincreasedcompetitionfrom
8、localcompanies.HowMultinationalsAffectHostCountriesTransport:Advantages:Thenewcompaniesoftenhelp
