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Globalisation and Multinationals (Protectionism (What is Proectionism…
Globalisation and Multinationals
Opportunities from Globalisation
Start selling exportsto other countries to open up foreign markets. This increases potential sales. Online sales allow orders for goods to be sent from abroad.
Open factories in other countries as production can be cheaper than in the home country.
Threats from globalisation
Protectionism
What is Proectionism
Whenn a government protects domestic firms from foreign competition using tariffs and quotas
What are tariffs
Taxes on imported goods
What are quotas
A restriction on the quantity of a product that can be imported
Why do some countries introduce tariffs
To protect undustries from foreign compeition
What are multinationals (MNCs)
Companies with factories, production or service operations in more than one countriy.
Examples of MNCs
Adidas
Nike
Coca-Cola
Apple
Potential benefits to a country of MNCs
Jobs
Exports
Choice
Investment
Potential problems for a country of MNCs
Local businesses sales?
Local firms may be forced out of business as MNCs usually have lower costs.
Profits where?
Profit goes to the MNCs home country.
What is Globalisation
An increase in worldwide trade and movement of people and capital between countries