Multinational companies
- Own, operate and control resources outside of its own country of origin.
- e.g. Research and development done in country of origin, but manufacturing and service operations done in other countries.

Discuss reasons for the growth of multinational companies.
- Fall in airfare and increase in routes
- Lowered costs in communication. Lowered phone bill costs and increased used of video conferencing.
- Increased availability of international schools, making it easier to relocate families.
- Use of the internet reducing prices and increasing transparency of companies.

Analyse the role played by multinationals in the global business environment.
- Increase level of competition
- Easier to enjoy benefits of economies of scale
- Greater choice of location
- Mergers, acquisitions and joint ventures give businesses a faster pace
- Increased customer base

Evaluate the impact of multinational companies on the host country.
- Hard for host country to control companies' actions if they do not follow their social responsibilities.
- Causes unemployment in the host country as they hire workers from other countries instead for cheaper prices.

Regional trading blocs
- Organizations that try to eliminate trade barriers on the movement of goods, services, labour and capital.
- Impose physical barries to international trade. E.g. imposition of tariffs to increase price of exports and reducing competitiveness of the product, and quotas to limit volume of value of foreign goods and services.
- Different levels of 'free' trade within trading blocs:
- Closer Economic Partnership Agreement (CEPA). Free trade agreement between two or more countries.
- Free Trade Area (FTA), member states agree to trade freely with each other, but have separate trade barriers with non- member countries.
- Common Market is a regional trading bloc where free trade and free movement of labour and capital occur between member countries.
- Main regional trading blocs around the world:
- The European Union
- The European Free Trade Association
- The North American Free Trade Agreement
- The Association of South East Asian Nations
- Closer Economic Partnership Agreement

Explain the impact on business of a country that is a member of a regional economic group/bloc.
- Some countries might ned to buy commodities from high-cost countries instead of low-cost countries