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