The Impact of MNC's

• multinational company: registered in one country but has manufacturing operating in different countries
• multinational company's will choose locations based on factors such as cost advantages and access to markets
• joint venture


  a contractual agreement between firms to combine resources and expertise to achieve a particular goal
• MNCs are likely to create jobs in the local community and offer more competitive wages and better working conditions than local businesses
• however, MNCs may exploit workers for low labour costs which is unethical
• balance of payments


  shows all financial transactions between a country and the rest of the world
• MNCs can improve the balance of payments of a country