GreenBowl Foods (GBF) is a multinational company headquartered in Norland. GBF produces frozen vegetarian meals and operates in several countries. Two years ago, GBF entered the host country of Sorelia by acquiring a small local food processing factory. It now plans to double its production capacity in Sorelia.

The government of Sorelia supports GBF because it wants to increase employment in food manufacturing and improve export earnings. GBF states that it will buy more vegetables from local farmers and provide training in food safety. However, some local food brands argue that GBF's lower prices and international brand recognition are reducing their sales. Community groups are also concerned about water use and packaging waste.

Selected data for GBF and Sorelia's food processing market:

Note: The percentage of GBF managers who were local citizens was not applicable before GBF entered because there were no GBF managers in Sorelia.

BlueWave Ports (BP) is a logistics multinational company headquartered in Farona. BP has signed a 25-year agreement with the government of the host country, Mavira, to build and operate a new container terminal. The project will involve foreign direct investment, improved road access to the port and training for local crane operators and warehouse supervisors. BP expects the terminal to reduce shipping delays for Maviran exporters.

However, the government has granted BP a long tax concession to attract the investment. Some local fishing communities claim that construction will damage coastal ecosystems, and two locally owned port service businesses are worried that BP’s global technology and lower operating costs will force them out of the market. BP has stated that most profits will be transferred to its shareholders in Farona during the first five years.

SunHarvest Foods (SHF) is a multinational company headquartered in Norland. SHF has opened a large fruit-processing plant in the host country, Calista, where mangoes and pineapples are grown by many small farmers. SHF offers farmers three-year supply contracts and has introduced food safety training, refrigerated storage and quality control systems. The government of Calista hopes that SHF will increase exports and create stable employment in rural areas.

Some pressure groups are concerned that SHF’s contracts require farmers to meet strict delivery times and accept prices set by SHF. Several small, locally owned juice producers say they cannot compete with SHF’s advertising budget or modern packaging. SHF has also been criticized for using large amounts of water during the dry season, although it has promised to publish a corporate social responsibility report next year.

Kestrel Electronics (KE) is a multinational company headquartered in Arvenia. KE manufactures components for tablets and smartphones. Three years ago, KE opened a large assembly plant in the host country of Lantana, where unemployment was high and the government wanted more foreign direct investment (FDI). KE imports most specialist parts from Arvenia but buys packaging and transport services from local suppliers in Lantana.

Some government ministers in Lantana argue that KE has brought jobs, training and tax revenue. However, a local pressure group argues that KE sends too much profit back to Arvenia and that pollution from the plant has increased.

Selected annual data for KE in Lantana:

MedNova Devices (MD) is a multinational company headquartered in Selvar. MD manufactures low-cost diagnostic equipment for hospitals. It plans to open a production and refurbishment centre in the host country, Ritania. The centre would assemble new devices, repair used equipment and recover components for reuse. MD says this circular business model will reduce electronic waste and create skilled jobs for technicians in Ritania.

Ritania’s government supports the project because many public hospitals currently import expensive medical equipment. MD has promised training for local engineers and partnerships with two technical colleges. However, some local electronics firms argue that MD will attract their best employees by paying higher wages. A workers’ union is concerned that refurbished equipment may be produced under intense cost pressure, and an environmental group says safe disposal of unusable components must be independently monitored. MD expects to transfer a large share of profits to Selvar after the third year.

Orion Mobile (OM) is a multinational company headquartered in Estara. OM sells smartphones and accessories in the host country of Belpa. Until recently, OM imported finished smartphones into Belpa and sold them through large retailers. OM has now introduced a circular business model in Belpa: customers can trade in old OM phones, which are repaired, refurbished and resold by OM in partnership with a local technical college.

OM claims that the circular business model improves its impact on Belpa by creating skilled jobs and reducing electronic waste. However, independent repair shops in Belpa argue that OM's official repair network gives OM too much control over spare parts and may damage small local businesses. The government of Belpa has given OM a three-year subsidy to support the refurbishment centre.

Selected annual data for OM in Belpa:

ReCircle Works (RCW) – a social enterprise

Read the resources and answer the questions that follow.

Resource 1 — Background of the social enterprise

ReCircle Works (RCW) is a social enterprise in the host country of Nambala. RCW collects used smartphones and laptops, repairs them and sells them at low prices to schools and low-income households. It also trains unemployed young people as repair technicians. RCW’s mission is “to reduce electronic waste while creating skilled, fairly paid employment in Nambala”. RCW currently operates in three cities and uses a circular business model based on repair, reuse and safe recycling.

A multinational company (MNC), TekNova, headquartered in another country, has offered RCW a five-year strategic partnership. TekNova would set up a regional refurbishment and distribution hub in Nambala. TekNova wants RCW to manage local training and collection centres, while TekNova would provide branded spare parts, software systems and finance for expansion. TekNova would own 60% of the proposed new hub and would repatriate most of its share of profits to its home country.

Resource 2 — Selected information about the proposed TekNova hub in Nambala

Resource 3 — Social-media information

A survey on RCW’s social-media page found that 68% of respondents supported the TekNova partnership because it could create jobs and reduce electronic waste faster. However, 54% were concerned that a foreign MNC might dominate the repair market and weaken locally owned repair shops.

Resource 4 — Quotation from Nambala’s Minister for Digital Development

“Foreign direct investment can help Nambala build technical skills. However, the government expects MNCs to source locally, pay taxes transparently and protect small domestic businesses where possible.”

Resource 5 — Quotation from RCW’s founder

“We need scale, but not at the cost of our mission. If RCW becomes just a low-cost subcontractor for TekNova, we will have failed the communities we exist to serve.”

FarmBridge Co-operative (FBC) – a social enterprise

Read the resources and answer the questions that follow.

Resource 1 — Background of the social enterprise

FarmBridge Co-operative (FBC) is a social enterprise in the host country of Calidia. FBC helps small fruit farmers access cold storage, quality testing and transport to local markets. It charges low membership fees and reinvests all surpluses into farmer training and solar-powered storage units. FBC’s social objective is to increase farmers’ incomes while reducing food waste.

AgriVita Foods, a multinational company headquartered overseas, plans to build a fruit-processing plant and export centre in Calidia. AgriVita has asked FBC to become its preferred supplier network. AgriVita promises guaranteed orders and training in international quality standards. However, AgriVita also requires exclusive supply contracts from farmers, strict delivery schedules and a price formula linked to global fruit prices.

Resource 2 — Selected forecast impacts if FBC signs AgriVita’s preferred supplier agreement

Resource 3 — Social-media information

A local farmers’ forum reported that 73% of younger farmers support the agreement because it may increase incomes and provide training. However, 61% of older farmers fear that exclusive contracts with an MNC will reduce their independence and bargaining power.

Resource 4 — Quotation from the owner of a locally owned fruit processor

“AgriVita can pay farmers quickly at first and then lower prices later. If local processors close, Calidia will depend on one foreign buyer.”

Resource 5 — Quotation from AgriVita’s regional director

“Our investment will create a modern export sector for Calidia. We are prepared to fund farmer training and storage facilities, but we need reliable volumes and quality control.”

CareLight Health (CLH) – a social enterprise

Read the resources and answer the questions that follow.

Resource 1 — Background of the social enterprise

CareLight Health (CLH) is a social enterprise in the host country of Darsana. CLH supplies low-cost solar-powered diagnostic devices to rural clinics and trains community health workers to use them. CLH’s mission is to improve access to basic healthcare in areas where electricity supply is unreliable. It reinvests surpluses into training women as health technicians.

MedAxis Global, a medical technology multinational company headquartered overseas, has entered Darsana. MedAxis wants to assemble diagnostic devices locally and has offered CLH a contract to distribute MedAxis-branded devices to rural clinics. MedAxis says that local assembly will create employment and reduce prices. CLH is concerned that MedAxis may use its brand, patents and financial power to dominate the market, set prices after local competitors have exited and repatriate profits.

Resource 2 — Selected information about Darsana’s rural diagnostic device market

Resource 3 — Social-media information

An online campaign by rural clinic nurses received 18 000 responses. 81% supported lower device prices and greater availability, but 57% said they would prefer devices supplied through CLH rather than directly by a foreign MNC.

Resource 4 — Quotation from a Darsana health official

“Darsana needs affordable diagnostic technology quickly. However, we do not want a short-term price reduction to create long-term dependence on one MNC.”

Resource 5 — Quotation from CLH’s training director

“Working with MedAxis could allow us to train more women as health technicians. But if our role is reduced to distribution, our local design knowledge and social purpose may decline.”