📚 Topic Summary
Multinational Corporations (MNCs) are companies that operate in more than one country. They often have headquarters in one country and branches or subsidiaries in others. Foreign Direct Investment (FDI) is when a company or individual from one country invests in a business in another country. This can involve buying a company, building a new facility, or investing in existing operations. Both MNCs and FDI play significant roles in global economics, influencing trade, employment, and technological advancements.
🔤 Part A: Vocabulary
Match the terms with their definitions:
| Term |
Definition |
| 1. Multinational Corporation (MNC) |
A. Investment made to acquire lasting interest in enterprises operating outside of the investor's economy. |
| 2. Foreign Direct Investment (FDI) |
B. A company that operates in more than one country. |
| 3. Globalization |
C. The process by which businesses or other organizations develop international influence or start operating on an international scale. |
| 4. Subsidiary |
D. A company controlled by another company. |
| 5. Host Country |
E. A nation in which a foreign company operates. |
✍️ Part B: Fill in the Blanks
Complete the following paragraph using the words: investment, trade, jobs, economy, technology.
Foreign Direct _______ can significantly impact a host country's _______. It often leads to increased _______, the creation of new _______, and the transfer of _______. This international _______ helps integrate different nations.
🤔 Part C: Critical Thinking
How do you think the rise of MNCs and increased FDI impact local businesses in developing countries? Provide examples to support your answer.