Week 5 part one summary sheet questions

Which of the following is NOT a benefit of multinationals to a host country?

• Increase in income and employment

• Transfer of technology

• Exploitation of less developed countries

• Improvement in human capital

What is one of the drawbacks of multinationals for a host country?

• Increase in exports

• Environmental damage

• Enterprise development

• Increase in tax revenue

How do multinationals contribute to the foreign currency reserves of a host country?

• By paying low wages

• By increasing tax revenue

• By increasing exports

• By repatriating profits

What is a concern related to the accountability of multinationals?

• They provide training for their workers

• They are often involved in environmentally destructive industries

• They may be able to evade laws in countries with weak or corrupt governments

• They help improve public services by paying taxes

What is the role of governments in relation to public services?

• To decrease the range of public services

• To provide a range of public services

• To privatize all public services

• To ignore the provision of public services

Which of the following is NOT listed as a public service in the document?

• Social security

• Health

• Retail

• Defence

How does government spending influence businesses?

• It has no impact on businesses

• It is generally unwelcomed by businesses

• It is generally welcomed by businesses and can lead to benefits such as more jobs

• It only benefits the government itself

What can be a consequence of constraining levels of public spending?

• Increased demand for luxury goods

• Higher income for consumers

• Negative impact on businesses due to factors like funding cuts

• Expansion of government projects

What type of tax do sole traders and partnerships pay?

• Corporation tax

• Income tax

• Indirect tax

• Fiscal tax

What is likely to happen if income tax is increased?

• There is more spending in the economy

• Businesses will expand production

• There is less spending in the economy

• Foreign businesses will be attracted to the country