Case Study 14: Multinational company - Nokia
- Created by: louisb98
- Created on: 21-05-14 21:30
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- Case Study 14: Multinational company - Nokia
- LOCATION
- Employees 2k people at 3 sites at Cambridge and Farnborough
- Located in the M11/M3-4 corridor for delivery access
- Heathrow airport allows directors to fly in/out area and deliver parts
- R&D workers employed from local Uni
- ABOUT NOKIA
- MNC from Finland (head office in Hensinki)
- World's largest phone manufacturer
- Nokia employ 112k worldwide
- R&D in 10 countries employing over 30k
- Sales in 150 countries
- REASONS for Global distribution
- To reduce costs --> increase profits
- Costs are reduced with opening of factories
- Countries with low labour costs
- Countries with cheap land
- low business rates
- To be close to worldwide customers
- Countries in Africa invested in mobiles instead of landlines
- Growth has been strong in LEDCs
- Advantages
- -Opening factories creates positive effect on people
- -Nokia employs 2k people at 3 UK sites- direct investment benefit
- Business taxes from expanding businesses invested by the local council
- Provides highly skilled jobs in R&D
- Disadvantages
- Other jobs are abroad in LEDCs & NICs with lower wages
- MNC may decide where to change its location
- LOCATION
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