Case Study 14: Multinational company - Nokia

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  • Created by: louisb98
  • Created on: 21-05-14 21:30
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  • Case Study 14: Multinational company - Nokia
      • 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
      • 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


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