MNCs
Globalisation
MNC stands for multinational corporation. The world is dominated by these firms.
Here are just some of the world’s MNCs.
McDonald’s
The world's biggest fast food chain restaurant. Producer of the Big Mac and McChicken Nuggets.
Coca Cola
There is only one Coca Cola. The luxury cola beverage for all classes of people. Rich or poor, Coca Cola is always the premium choice. Also the owners of other brands such as Fanta and Sprite.
BMW
The producer of the “ultimate driving machine”. Producer of iconic models such as the 3 series, 5 series and 7 series. Also owners of other car brands like Rolls Royce.
Rolex
The king of luxury watch brands. Producer of iconic pieces such as the Submariner, Datejust and Daytona. Also owners of other companies such as Tudor.
Apple
The producer of products such as the iPhone, iPod, iMac, Macbook. Also owners of other companies such as Dre Beats headphones.
The world’s largest social networking website. Also, owners of Instagram, WhatsApp messenger and Oculus VR.
Amazon
The world's largest online retailer. Also, the producer of products like the Kindle E-reader, Fire Tablet and Echo smart speaker.
Let’s have a look at some of the pros and cons of MNCs.
Benefits of MNCs
FDI brings new economic activity and finance to the economy, which brings about new jobs, incomes, wealth, increased taxes for the government too
Economies of scale -> due to the sheer size of MNCs
Could raise living standards in developing countries
Costs of MNCs
Potential to exploit workers in developing countries
Can force local/small firms out of business through sheer monopoly power, mergers and acquisitions (notice how many of the companies above own other companies)
MNCs can always relocate and cause mass unemployment (e.g. Nissan factory in the UK)
MNCs can withdraw profits and send them back to the country of origin
MNCs are often global monopoly powers, so prices may rise and choice may worsen
Large MNCs may have the power to influence government policy e.g. lower tax rates
We hope you enjoyed reading this content. Want to pass your Economics exams? Hire a specialist economics tutor today. At mrbanks.co.uk, we supply online Economics tuition to support you through your exams.
Online tuition provides so many benefits.
It’s cheaper. It’s less time-consuming. It’s effective.
Want to try before you buy? Contact us to book a trial lesson. You can see if online tuition is right for you.
Contact us today and book a trial lesson with an online Economics tutor.