π Topic Summary
Multinational Corporations (MNCs) are companies that operate in more than one country. They often have factories, offices, or stores in many different nations. Their actions can have a big impact on the economies of those countries, both positive and negative. Understanding MNCs is key to understanding global trade and how the world's economies are connected.
π Part A: Vocabulary
Match the term with its correct definition:
- Term: Globalization
- Term: Foreign Direct Investment (FDI)
- Term: Outsourcing
- Term: Trade Surplus
- Term: Economic Impact
- Definition: The effect of an event or action on the economy of a country or region.
- Definition: When a country exports more than it imports.
- Definition: Companies moving production or services to other countries to reduce costs.
- Definition: The process by which businesses or other organizations develop international influence or start operating on an international scale.
- Definition: An investment made by a company or individual in one country into business interests located in another country.
Match the terms to their definitions:
| Term |
Definition |
| 1. Globalization |
|
| 2. Foreign Direct Investment (FDI) |
|
| 3. Outsourcing |
|
| 4. Trade Surplus |
|
| 5. Economic Impact |
|
π Part B: Fill in the Blanks
Multinational corporations play a significant role in the global economy. They often bring _________ (1) and create _________ (2) in host countries. However, concerns exist about their impact on _________ (3) labor practices and environmental _________ (4). Understanding these complexities is essential to navigating the challenges and opportunities presented by _________ (5).
Word Bank: jobs, investment, global, standards, sustainability
π€ Part C: Critical Thinking
Imagine a large multinational corporation wants to build a factory in your town. What are three potential benefits and three potential drawbacks of this situation for your community?