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CH29:Business and the international economy - Coggle Diagram
CH29:Business and the international economy
Multinational Business
Advantages to the country
More Competition
Taxes paid to the government
Jobs Created
New investment
More exports
Fewer Imports
Disadvantages to the country
Existing firms in danger
Influence the government and economy
Profits flow out of country
USe of scarce resources
Often only unskilled jobs created
Advantages to the business
New Markets
Obtain Raw Materials
Avoid Trade barriers
Low labour costs
Spread Risk
Exchange rates
Apprecitation - exchange rate rises
Export prices may have to rise
Imports prices likely to fall
Price of one currency in terms of another
Supply of the currency
Demand for this currency
Depreciation - exchange rate falls
Imports prices likely to fall