This is a summary of section 4.4 of the Pearson Edexcel A-Level Business syllabus. The notes are organised according to the syllabus, split up under the headings: The Impact of MNCs; Ethics; and Controlling MNCs. Each section has a table of key terms with their definitions and a table of key equati...
4.4 – Global Industries and Companies (Multnatonal Corporatonss
4.4.1 – The Impact of MNCs
Multinatioinal A busiiness that ioperates iin miore thain ioine ciouintry
ciorpioratioins (MNC)
FDI fliows A reciord iof the value, expressed iin US$, iof direct iinvestmeints
made betweein ciouintries iin a givein periiod iof tme
Balaince iof paymeints A reciord iof a ciouintry’s trade iin gioiods aind services, iinvestmeint
iinciome aind trainsfers with the rest iof the wiorld
Busiiness culture The values aind staindards shared by peiople aind grioups withiin ain
iorgainisatioin
Tax reveinue A finaincial charge by the Gioverinmeint ioin ain iindividual ior
busiiness
Trainsfer priciing Whein ioine part iof ain MNC iin ioine ciouintry trainsfers (sells) gioiods/
services tio ainiother part iof the MNC iin a difereint ciouintry. The
price charged iin the ‘trainsfer price’
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