Edexcel Business A Level Revision

Multinational Corporation (MNC) - is a business that is based or registered in one country but has outlets/affiliates or does business in other countries.  Such companies have offices and/or factories in different countries (typically emerging economies or undeveloped countries due to cost savings) and usually have a centralised head office (typically in western markets e.g. UK and US) where they coordinate global management. Characteristics of a MNC include; Dominant players in the market Complex structures, multi-site and multi-product Grown through organic and inorganic growth Heavy investment in R&D Globally recognised brands Globalisation is one of the major reasons for the growth in MNCs. A number of businesses in order to grow and develop have had to take on a global or internationak perspective, MNCs have also caused further globalisation. MNCs impact the local economy in the following ways; Local labour, wages, working conditions and job creation Loca...

Taxation - Charges on individuals and organisations by governments. Direct Taxation - This includes income tax, National insurance and corporation tax - direct taxes are charged on earnings. Indirect Taxation - This includes VAT, excise duties (e.g. on petrol and alcohol), car tax, insurance tax and others. In 2015, the government raised a total of £647 billion from taxation. 94% came from central sources such as income tax, corporation tax and indirect taxes , just 6% came from local taxation (council tax) Direct taxation is levied on earnings and will affect the level of a consumers' disposable income. For example, an increase in income tax will reduce sales of many products and services, with some expectations. Indirect taxation such as VAT will have a similar effect; an increase in the rate of VAT will increase prices (although food eaten at home and a few other products such as housing, books and children's clothes carry no VAT). This will reduce consum...