Topic Summaries

Multinational companies (MNCs)

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GCSE > Business > AQA > GCSE Business Topic Summaries > Business objectives > Multinational companies (MNCs)
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Formula sheet

  • Multinationals (MNCs): large businesses that operate in more than one country (e.g. Coca-Cola, McDonald’s, Unilever, and Shell). They often have offices, factories, or sales teams across continents.
  • Advantages of becoming an MNC:
    • Access to international markets in a host country increases customer base and sales.
    • Reduced costs through access to cheaper labour and raw materials.
    • Spread business risks across different regions.
    • Economies of scale through larger-scale operations.
Advantages for host countries Disadvantages for host countries
Jobs: MNCs often provide employment in local factories or offices Environmental damage: MNCs may pollute or overuse natural resources
Investment: may build infrastructure (e.g. factories, roads, tech facilities) Exploitation: may pay low wages or provide poor working conditions
Increased choice: consumers benefit from wider product range Competition: local businesses might be outcompeted by large MNCs
Economic growth: may boost exports and GDP for the host country Repatriation of profits: MNCs often send profits back to the home country rather than reinvesting locally

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