Multinational businesses
Multinational businesses
Businesses that have their headquarters in one country but operating branches, factories and assembly parts in others
More than exporters/importers they produce g&S in more than one country.
Advantages
- Nearness to markets: lower transport costs, better market information regarding consumer tastes.
- Lower costs of production: tax incentives, government grants, low labour rates, cheap rent and site costs
- Avoid import restrictions
- Access to local resources
Problems
- Poor communication
- Language and culture, misunderstanding
- Coordination needs to be monitored
- Skill levels must be low
