Explain the advantages of being a multinational company.

• A multinational company can access new markets and increase sales.
• A multinational company can spread risk by selling different products. A fall in demand in one market can be balanced out by rising sales in other countries
• A multinational company can gain better access to raw materials
• A multinational company can benefit from economies of scale e.g. purchasing, financial in order to lower average costs
• Reduce transport costs can be reduced as goods are produced near to the market
• Barriers to trade can be avoided
• Tax liability can be reduced. A multinational company can take advantage of favourable laws