Part 1
After receiving approval from the Malaysian government, the Swedish firm IKEA, the world’s largest retailer of home furnishings, has put $106 million into Malaysia over the last three years. It now intends to launch another major store in the country, which will employ 450 people and is forecast to achieve sales of about $50 million in the first year.
(a)[10]
Use multiplier analysis to explain what effect this investment could have on Malaysian national income.
(b)[15]
Discuss whether the activities of multi-national companies are always beneficial.