OCR A-Level Geography H481
Coastal Landscapes
Glaciated Landscapes
Dryland Landscapes
Earth’s Life Support Systems
Changing Spaces; Making Places
Trade in the Contemporary World
Global Migration
Human Rights
Power and Borders
Climate Change
Disease Dilemmas
Exploring Oceans
Future of Food
Hazardous Earth
Geographical Skills
Trade in the Contemporary World
Multinationals, outsourcing and the new international division of labour
- 3 things to know
- Component 02
Overview
Recall questions on multinational corporations, outsourcing and offshoring, why firms locate in emerging economies, the benefits and drawbacks for host countries, transfer pricing, the new international division of labour and the smile curve, call centres in India and the Philippines, labour mobility, the brain drain, the kafala system, and reshoring.
What you need to know
Answer each one before you reveal it.
Explain how a multinational's arrival can create a local multiplier effect.
Give two disadvantages for a country that becomes heavily dependent on foreign firms.
Questions from this subtopic
Each one with the model answer underneath.
- 1
What is a multinational corporation?
Model answer
A multinational corporation is a firm that owns or controls production, services or sales in more than one country.
- 2
Define outsourcing.
Model answer
Outsourcing is contracting part of a firm's work out to a separate company, frequently in another country, rather than carrying it out in-house.
- 3
How does offshoring differ from outsourcing?
Model answer
Offshoring moves an activity abroad but keeps it inside the same firm, whereas outsourcing hands it to a different company, which may or may not be overseas.
- 4
Why do multinationals locate manufacturing in emerging and developing countries?
Model answer
To cut wage, land and compliance costs, to reach fast-growing local markets, and to take advantage of tax incentives while still using skilled labour and good ports.
- 5
Name three ways an emerging economy benefits from hosting a multinational.
Model answer
It gains formal jobs and wages, tax revenue and foreign currency, and technology and skills transferred to local workers and suppliers.
- 6
Explain how a multinational's arrival can create a local multiplier effect.
Model answer
Wages are spent in the local area and the plant buys from local suppliers, so income circulates and further jobs appear in housing, transport, retail and services.
Other ways to work this
The same content, four other ways.
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Six ways to work the same material.
Every question in Trade in the Contemporary World, on a schedule.
Attempt a question from memory, write the correct version, then attempt it again. Levo records the jump between your first attempt and your last, and brings each question back on the day you are due to forget it.
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