Case Study 14: A case study of one Multinational company (Finlay's)
- Created by: Elise-741
- Created on: 28-05-17 12:52
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- Case study 14: A case study of one Multinational company (Finlay's)
- Key Terms:
- Multinational company: a business that has branches in more than one country
- Raw materials: the basic resources from which a product is made
- Labour: the workers needed for business
- Multiplier effect: this is the knock on effect of a bsuness opening orc closing
- Infrastructure: the basic requirements for a site eg. water supply, telephone lines, electricity, road access
- Location's:
- Head office is in London because it's the centre of trade and finance and is easily accessed making international cooperation easier
- Flowers are grown in Kenya around Lake Naivasha and South Africa because the climate is appropriate and labour is cheap
- Flowers are packaged in Kenya, Frankfurt (Germany) and Lincoln (UK) because they have the factories/equipment to do so and are close to the market
- Flowers are distributed and sold in the UK, Netherlands and Japan because they have the disposable income to purchase them
- Effects of Finlay's locating at Lake Naivasha:
- Social
- Provide large amounts of employment causing people to migrate to the area to get an income and live above the poverty line
- Workers get housing, transport, medical care and subsidised meals along with pay
- Supports 2 million people
- Increase in population to 300,000 people all of who rely on the lake for water
- People going underfed as pay is insufficient
- Workers are expiosed to harsh chemicals
- Economic
- Some farms produce and sell at Fairtrade standards
- Contributes to national development and growth
- Contributes to economy
- Profits aren't staying within Kenya
- Pay is short of living wage
- Causing closure and loss of business for fishermen and floating restaurants on the lake
- Social
- Key Terms:
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