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CHAPTER 29 (Mutinational businesses (Advantages (Increased exports -->…

- - - - -Increases sales in potential countries
        -Online selling --> Sent products abroad
      - -Expensive, foreign consumers might not like/buy the product
    - - -Cheaper to make goods in other countries than at home
      - -Poor quality ?
        -Ethical issues (over poor working condition) ?
        -Expensive/ difficult to operate ?
    - - No trade restrictions -> Profitable
      - The products need maintenance and repairs
    - - Cheaper to purchase supplies from other countries when there is free trade --> Reduce cost
        Can be purchase online
      - Need a reliable supplier
        Transport cost might be high
  - - - Create further competition
        Multinational --> Economies of scale --> Afford best employees
      - Local firms could become suppliers to these multinationals --> Increase sales
    - - Employees have more choice --> Business have to make efforts to keep their employees
      - Encourage local businesses to use motivational methods
    - - Competitors have cheaper products/ higher quality --> Sales of local businesses fall
      - Increases competitors --> Force local business become more efficient