Economics

Front 1

What is a co-operative

Back 1

A co-operative is a BUSINESS organization owned and controlled for mutual benefit.(provides benefits for the members/owners)

Front 2

List some features of WORKER CO-OPERATIVES

Back 2

-all shares are owned by WORKERS

Advantages:
- receive all the profits
- limited liability

Disadvantages:
- difficult to raise money (they lack capital)
-business might be run badly due to lack of entrepreneurial experience

Front 3

List some features of CONSUMER CO-OPERATIVES

Back 3

-shares owned by members
-managers run the organization

Advantages:
-Owners have limited liability
-receive a share of profits
-all have the right to vote
- co-operative movement expands to retail activities

Front 4

What are the ADVANTAGES of MULTINATIONALS

Back 4

1. Able to sell their products in many countries
2.They are able to reduce transport costs because they are EVERYWHERE!
3.They can source their labor in less developed countries so they can pay less
4.They can use ECONOMIES OF SCALE (reduce averages costs)
5. they create differentiated products so less risk.
6. More money for research and development
7. They can avoid trade barriers

Front 5

What are the DISADVANTAGES to the countries who "host" hehe the MULTINATIONAL COMPANIES?

Back 5

1. Multinationals only move to wherever is profitable...so this could lead to a loss of jobs
2. By switching profits, multinationals can avoid paying taxes in countries
3. They can force other firms OUTTA business
and...
4. They can exploit workers by using cheap labour :( :(
hmph so mean