Multinational Corporations
Multinational investment has (1) ________. (1) ________.
Establishment of a multinational corporation (MNC) was
a way to generate income from diversified sources, a way to
(2) ________ return on investment and to benefit from cheaper (2) ________.
labour abroad.
The formation of the European Economic Community
(EEC) in 1958 (3) ________ the growth of MNCs. Today the (3) ________.
large MNCs control from 50 to 200 subsidiaries.
A favourable aspect about MNCs is that they create
(4) ________ in foreign countries. They also contribute (4) ________.
to innovation or (5) ________ of new products and (5) ________.
technology. But when innovation levels off and local technology
reaches a point of sufficiency, MNCs are sometimes considered
to be no longer (6) ________. (6) ________.
(7) ________ MNCs must learn to interrelate their subsidiaries (7) ________.
with the parent company, to (8) ________ decision-making authority (8) ________.
and to develop satisfactory methods of control and supervision.
An MNC must deal with (9) ________, different legal (9) ________.
and tax structures, foreign currency. Other problems include how to
secure continued (10) ________ to resources, how to increase market (10) ________.
share, and how to tackle increased criticism and interference by foreign
government, etc.