What is a multinational corporation (MNC)?
a) A company that operates in only one country
b) A company that has operations in multiple countries
c) A government-owned business
d) A small local business with no international presence
Which of the following is an example of an MNC?
a) A local grocery store
b) A global fast-food chain like McDonald’s
c) A government-run hospital
d) A non-profit organization
What is one major advantage of MNCs for host countries?
a) They decrease employment opportunities
b) They contribute to economic growth and development
c) They reduce international trade
d) They make domestic industries obsolete
How do MNCs typically expand into new markets?
a) Through mergers, acquisitions, and direct investments
b) By shutting down local businesses
c) By increasing tariffs on imported goods
d) By eliminating foreign exchange rates
What is one criticism of MNCs in developing countries?
a) They always provide high wages to workers
b) They may exploit cheap labor and natural resources
c) They eliminate corruption in the economy
d) They operate only in developed nations
Which sector has the highest number of multinational corporations?
a) Information technology
b) Agriculture
c) Local handicrafts
d) Non-profit organizations
Which strategy is commonly used by MNCs to reduce production costs?
a) Outsourcing and offshoring
b) Increasing domestic taxes
c) Banning foreign workers
d) Reducing product quality
What is one way MNCs influence local economies?
a) By increasing foreign direct investment (FDI)
b) By reducing economic competition
c) By preventing the entry of new businesses
d) By limiting job creation
What is a major disadvantage of MNCs for home countries?
a) They create more jobs domestically
b) They may lead to job outsourcing and unemployment
c) They increase government revenue
d) They improve local infrastructure
Which of the following is a characteristic of an MNC?
a) It only operates within its home country
b) It has a global presence and supply chain
c) It avoids international markets
d) It is owned and operated by a single government
Which of the following is an example of how MNCs impact globalization?
a) They restrict access to new technology
b) They facilitate cultural exchange and trade
c) They prevent the spread of global brands
d) They decrease foreign investments
Which region attracts the most MNC investment due to cheap labor?
a) North America
b) Western Europe
c) Southeast Asia
d) Scandinavia
How do MNCs contribute to innovation?
a) By investing in research and development (R&D)
b) By avoiding technology upgrades
c) By restricting international trade
d) By reducing production efficiency
What is one major reason MNCs establish operations in developing countries?
a) High labor costs
b) Strict environmental regulations
c) Lower wages and production costs
d) Limited access to resources
Which of the following is a challenge faced by MNCs in foreign markets?
a) Navigating different regulatory environments
b) Having complete control over all industries
c) Eliminating global competition
d) Reducing tax rates globally
What is a negative environmental impact of MNCs?
a) They reduce global pollution
b) They may contribute to environmental degradation
c) They eliminate carbon emissions
d) They completely rely on renewable energy
How do MNCs benefit from economies of scale?
a) By reducing production costs due to large-scale operations
b) By limiting international trade
c) By hiring only domestic employees
d) By restricting business expansion
Which financial strategy helps MNCs reduce tax burdens?
a) Profit repatriation
b) Tax evasion
c) Trade embargoes
d) Price controls
Which organization regulates MNC activities in international trade?
a) FIFA
b) World Trade Organization (WTO)
c) International Olympic Committee
d) Greenpeace
Which of the following is an ethical issue faced by MNCs?
a) Encouraging employee rights
b) Exploiting labor in low-wage countries
c) Strengthening local economies
d) Supporting environmental sustainability
How do MNCs help improve infrastructure in host countries?
a) By investing in roads, electricity, and communication networks
b) By banning foreign trade
c) By reducing government revenues
d) By eliminating competition
What is the term for MNCs using their global influence to negotiate favorable tax policies?
a) Corporate lobbying
b) Trade protectionism
c) Free-market economics
d) Import substitution
Which country is home to the most multinational corporations?
a) United States
b) South Africa
c) Argentina
d) New Zealand
How do MNCs affect cultural globalization?
a) By spreading global brands and consumer culture
b) By eliminating international trade
c) By restricting global communications
d) By avoiding foreign markets
Which of the following is a risk MNCs face in foreign markets?
a) Political instability and trade restrictions
b) Unlimited government support
c) Complete control over local businesses
d) Protection from market changes
What is a common advantage for MNCs operating in multiple countries?
a) Access to diverse markets and resources
b) Higher domestic competition
c) Less access to international customers
d) Strict trade barriers
