Multinationals

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  • Created by: emily_284
  • Created on: 01-01-22 13:47

Multinationals

Advantages

  • Wages and raw material costs are lower in host countries
  • business can avoid legislation in home country
  • grants can be issued by governments to locate in their country

Disadvantages

  • language barriers can slow down communication
  • cultural differences can affect production, e.g., Siestas in Spain
  • exchange rates can affect purchasing and paying expenses in different countries
  • time differences can hinder communication between head office and branches around the world

Evaluation

a multinational is a business that has operations in more than one country.

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