International Trade

Evaluating the impact of Multinationals

Since the multi-national is set up in the UK there will be fewer imports and so the balance of payments will improve.  However, since the profits are largely deported the balance of payments will be negatively affected in the long-run.  E.g. new jobs will be created which will be less of a drain on the government’s budget.

However, the jobs tend to be low paid and unskilled.