Name the multinational companies on the next slide.

Starter Match the company to the country

Ikea BMW Toshiba LG Fiat Subway Vodafone Guinness Rolex Santander Tofas Turkey Switzerland Germany USA Ireland Spain South Korea Sweden UK Japan Italy

Multinationals
Lesson Outcomes: Demonstrate knowledge and understanding of Multinationals

Multinationals

Multinational companies
These are usually very large companies which have:
A head office in one country Offices/factories/shops/facilities in lots of different countries

The number of multinational companies is increasing

Name five multinational companies

1. 2. 3. 4. 5. _______________________________ _______________________________ _______________________________ _______________________________ _______________________________

Examples of Multinational Companies

Where did this company begin?

Starbucks global operation

Where did this company begin?

Where did this company begin?

Where did this company begin?

Advantages and disadvantages of multinational companies

Advantages of Multinational Companies

Can locate:
Around the world nearer to the markets they serve (their customers)

Advantages of Multinational Companies

Can locate:
Near to raw materials

Advantages of Multinational Companies

Can locate:
Where production costs are lower

Can you think of any disadvantages of being a multinational company?

Disadvantages of multinational companies

Different languages Different currency and different exchange rates Transportation costs
And PIRATES!

Different legal requirements

E.g. cigarette labelling

Different languages

Different currencies and exchange rates

Transportation costs

Different laws

Activity 1 Fill in the missing words using the list below

__________ companies are usually very ____ companies. They may have a ____________ based in one country but have factories or _________ in other countries. The number of multinational companies is _________ as business becomes more closely __________.

Integrated, Head office, Increasing, Multinational, Shops, Large

Advantages and disadvantages of multinational companies

Advantages 1. Can locate near to customers 2. Can locate near to raw materials 3. Can locate where production is cheaper Disadvantages 1. Different languages 2. Different currency and different exchange rates 3. Transportation costs 4. Different legal requirements
E.g. cigarette labelling

Activity 2 True or False ?

A multinational company is one that consists of many different races. A multinational companys head office may be in another country separate from its manufacturing facilities. The number of multinational companies is decreasing

Can you help a company achieve world domination?!!

The Chief Executive of a well known UK company wants to go global with their business. Using what you have learnt about Multinational Companies, advise the Chief Executive if becoming a Multinational company is a good idea [10]