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FLASHCARDS IN UNIT 1. CHAPTER 6. BUSINESS STRUCTURE
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What are the two main types of PPP. Explain.
What are the two main types of PPP. Explain.
• Government funded - Privately managed schemes. Here government provides all of the funding but the management is done by the private business.
• Private sector funded - Government or state managed. Vice versa.
Def. Multinational Businesses
Def. Multinational Businesses
Business organisation that has its headquarters in one country, but with operating branches, factories and assembly plants in other countries.
Reasons to become multinational (4 (3) (3)
Reasons to become multinational (4 (3) (3)
• Become closer to main markets
+ Lower transport costs
+ Better market info regarding consumer tastes
+ Easier to gain consumer loyalty
• Lower costs of production
+ Lower labour rates
+ Cheaper rent and site costs
+ Government grants and tax incentives to encourage certain activities
• Avoiding import restrictions by producing in the local country
• Access to local natural resources that are not available in company's home country
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