MNCs

Which of the following best defines a multinational corporation?

• A company that exports to many countries

• A large company that imports from many countries

• A company that operates in many different countries

• A company that produces goods and services for a large market

Which of the following is NOT an example of a MNC?

• McDonald's

• Nike

• British Petroleum

• Laoganma

• Apple

Job creation is a significant advantage for countries that receive FDI.

Which situation below indicates that a foreign company has created jobs in the United States?

• American car manufacturer Ford closes down its car production plant in Detroit, Michigan and moves to Mexico.

• Apple partners with electronics producer Foxconn in Shenzhen to produce its iPhone and iPad products.

• Japanese car manufacturer Honda builds a production plant in Marysville, Ohio and expands to 11 other locations as well.

• American company Toys R Us closes down its retail stores in the US and starts opening them in China.

True or false: MNCs have been accused of taking advantage of relaxed environmental regulations in developing countries.

• True

• False

Rapid integration or interconnection between countries is known as:

• Privatisation

• Free trade

• Globalisation

• Liberalisation

The reason due to which multinational companies set up their branches in other countries is

• cheap labour and resources

• welfare motive

• to generate employment

• to generate income

Choose the reason for which MNCs are attracted to India for investments.

• India has educated English speaking people

• India has skilled professionals

• India has a lot of natural resources

• All of the above

Tata Steel is an:

• American MNC

• Indian MNC

• Chinese MNC

• none of these

What is a common criticism of multinational companies in relation to labour practices in host countries?

• They often promote fair labor wages

• They can exploit cheap labour and poor working conditions

• They ensure all workers are unionized

• They provide benefits to all employees equally

What role do multinational companies play in technological advancement in host countries?

• They hinder technological growth

• They introduce new technology and practices

• They monopolize all technological resources

• They ignore local technological needs