Syllabus: SQA - Higher Course Spec Economics
Module: Global Economic Activity
Lesson: Multinationals
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Introduction
Multinationals are a core part of the Global economic activity unit in the SQA Higher Economics course. This part of the specification helps students understand how large international firms shape trade, employment, and policy across countries. It’s not just about definitions, but about giving students the tools to evaluate real economic decisions and their impacts. The topic is also an ideal lens for embedding global citizenship and critical economic thinking, helping students understand both the benefits and controversies of multinational enterprises (MNEs).
Key Concepts
According to the SQA specification, students should understand:
The nature and role of multinationals in the global economy.
Why MNEs choose to operate in different countries (e.g. access to markets, lower costs, skilled labour).
The economic impact of MNEs on host countries, including employment, tax contributions, and technology transfer.
Possible drawbacks, such as profit repatriation, influence over local politics, and tax avoidance.
The relationship between MNEs and developing/emerging economies.
The influence of currency fluctuations on multinational operations and trade flows.
Students are expected to apply this knowledge to real-life situations and make reasoned judgements using data and examples.
Real-World Relevance
Multinationals are everywhere — from the phone in a student’s pocket to the coffee in their hand. Companies like Apple, Nestlé, and Unilever operate across continents, shaping job markets, influencing policies, and even affecting local culture.
Take Amazon’s distribution centre in Dunfermline: it’s a real-world example of an MNE bringing jobs and infrastructure investment to Scotland, while also raising questions around working conditions, tax arrangements, and market power. Or look at how global firms responded to Brexit or the pandemic — shifting supply chains, rethinking logistics, and sometimes pulling out of markets entirely.
These are the kind of case studies that not only meet the spec, but stick with students long after the exam.
How It’s Assessed
Students are assessed on their ability to:
Demonstrate understanding of key terms and concepts (e.g. definitions of multinationals, reasons for international expansion).
Evaluate the effects of MNEs on local and global economies using examples.
Interpret and use economic data to support conclusions.
Assessment formats include:
Extended response questions (usually requiring application, analysis, and evaluation).
Diagram-based and data-response tasks.
Use of command words like explain, analyse, and evaluate, which students should be explicitly taught to interpret.
A strong response integrates real examples and applies economic reasoning — it’s not about rote learning, but about critical thinking.
Enterprise Skills Integration
This topic is an ideal launchpad for developing enterprise skills:
Decision-making: Why do firms choose one country over another?
Problem-solving: How should a country respond to multinational tax avoidance?
Evaluation: Are the benefits of hosting MNEs worth the trade-offs?
You can extend this by asking students to role-play as government ministers or business executives, deciding whether to attract or regulate a multinational. These activities build economic reasoning and mirror the kinds of decisions faced in real business and policy roles.
Careers Links
This topic connects directly to Gatsby Benchmarks 4, 5 and 6. It supports:
Awareness of career pathways in international business, finance, economics, law, and public policy.
Understanding of economic roles like international trade advisor, financial analyst, foreign investment consultant, and economic development officer.
Engagement with employers through guest talks from local branches of global firms or virtual tours of multinational offices.
Encouraging students to follow current MNE stories in the news can also show how classroom learning links to dynamic career sectors.
Teaching Notes
What works well:
Start with students’ everyday experiences (e.g. what brands they use, where they’re made).
Use current case studies — even better if they’re local or controversial.
Pair economic theory with interactive debate or scenario-based tasks.
Common pitfalls:
Overloading with terminology before students grasp the real-world context.
Relying on textbook examples that feel distant or outdated.
Underestimating the challenge of evaluating — students need modelling and scaffolding.
Extension ideas:
Have students compare two countries’ approaches to attracting MNEs.
Link to ethics and sustainability by exploring how MNEs handle environmental or labour issues.
Build in a short research project: “Which MNE has had the biggest impact on Scotland in the last decade?”
