What is a key characteristic of a multinational corporation?

Multinational Corporations and Franchising Concepts

Interactive Video
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Business
•
11th - 12th Grade
•
Hard

Patricia Brown
FREE Resource
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10 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
It has sales offices and manufacturing facilities in multiple countries.
It does not engage in foreign investment.
It operates in only one country.
It only exports products.
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How do MNCs benefit from foreign investment?
By increasing costs.
By avoiding competition.
By accessing a larger consumer base.
By reducing their market share.
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is a common challenge faced by MNCs in both home and host countries?
Lack of resources.
Similar competition.
Unique operational factors.
Different environmental factors.
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following is a disadvantage of licensing as an entry mode?
High political risk.
High initial investment.
The licensee may become a competitor.
Complete control over the licensee.
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What distinguishes franchising from licensing?
Franchising is more costly.
Franchising involves less control over the local firm.
Franchising agreements are typically shorter.
Franchising allows more control over the franchisee.
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which type of franchise involves the franchisee operating under the franchisor's name?
Product franchise
Business format franchise
Manufacturing franchise
Joint venture
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Why might a joint venture be necessary for an MNC?
To avoid competition.
To increase the cost and risk of investment.
To avoid legal restrictions on foreign investment.
To operate independently in a foreign market.
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