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Edexcel IGCSE Business Studies 1.5.2 Importance & growth of multinationals

Practise analysing why firms become multinationals and how host countries may gain or face drawbacks from multinational activity.

Syllabus
First assessment 2019
Course
Business Studies 4BS1

Exam points

  • analyse benefits of multinational status using sales, labour access or economies of scale
  • explain how a host country may gain jobs, income or investment from a multinational
  • evaluate expansion choices by linking locations to customers, costs and business aims

1.5.2 Importance and growth of multinationals question 1

[Maximum number: 3]

Mahindra \& Mahindra Limited (M\&M) is an Indian multinational vehicle manufacturing corporation with its headquarters in Mumbai, India. It is one of the largest manufacturers of cars, vans and tractors in the world.

M\&M started in 1945 and has prospered for over 75 years with the aim of 'Rising through crisis'. In the 1970s with the oil crisis that sent the cost of petrol rising, it adapted its tractor diesel engines to be used in its cars and vans.

M\&M is committed to ensuring that it protects the environment. In 2020 it planted 1.32 million trees across India. It supports schools for disadvantaged children and teenagers.

Figure 1 Maslow's Hierarchy of Needs

Figure 1

Figure 1

Explain one advantage of becoming a multinational business.

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