Multinational Companies
- A multinational company (MNC) is a business that is registered in one country but has manufacturing, processing and/or service outlets in many different countries
- E.g. Starbucks headquarters are in Washington, USA but they have 32,000 stores in 80 countries
- E.g. Starbucks headquarters are in Washington, USA but they have 32,000 stores in 80 countries
Diagram: Examples of Multinational Companies
Well-known multinational businesses include BP, General Electric (GE), McDonalds and FedEx
- Factors such as globalisation and deregulation have contributed to the growth of MNC’s
- MNC’s often choose locations based on factors such as cost advantages and access to markets
- Nike originates from the USA, but 50% of their manufacturing takes place in Mexico, China, Vietnam and Indonesia due to the lower production costs in these countries