Tag: meaning and features of mncs

Questions Related to meaning and features of mncs

Collaboration with MNCs also lead to growth of monopolies.

organisation of commerce and management multinational corporations global enterprises meaning and features of mncs public sector undertakings & global enterprises

  1. True

  2. False

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Correct Option: A
Explanation:

MNCs also lead to the growth of monopolies. A multinational corporation (MNC) has facilities and other assets in at least one country other than its home country. Very large multinationals have budgets that exceed those of many small countries.

Multinational corporations are sometimes referred to as transnational, international or stateless corporations.

Highly developed research and development departments help in the task of developing _________.

organisation of commerce and management multinational corporations global enterprises meaning and features of mncs public sector undertakings & global enterprises

  1. new advanced products

  2. higher profits

  3. patents and copyrights

  4. monopoly of the MNCs

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Correct Option: A
Explanation:

Global enterprises are characterized by having highly sophisticated research and development departments engaged in the task of developing new products and superior designs for existing products.

Aggressive market strategies are used by global enterprises to __________________.

organisation of commerce and management multinational corporations global enterprises meaning and features of mncs public sector undertakings & global enterprises

  1. gain more market share

  2. increase their sales in short period

  3. tap the market from existing business

  4. grow their reach in a nation

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Correct Option: B
Explanation:

Aggressive Market. A market or exchange with a high trading volume. When a market becomes very aggressive, the prices of stocks can go up significantly, which in turn makes it more expensive for a trader to become involved in the market by buying stocks.

Global enterprises have a problem in market penetration.

organisation of commerce and management multinational corporations global enterprises meaning and features of mncs public sector undertakings & global enterprises

  1. True

  2. False

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Correct Option: B
Explanation:

Global enterprises does not have any problem in market penetration  because their operations and activities extend beyond the physical boundaries of their own countries. 

Global Enterprises usually have centralized control in their home nation.

organisation of commerce and management multinational corporations global enterprises meaning and features of mncs public sector undertakings & global enterprises

  1. True

  2. False

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Correct Option: A
Explanation:

Global enterprises have their headquarters in their home country and exercise control over all branches and subsidiaries. This control is limited to the broad policy framework of the parent company.

Restrictive clauses are signed by the global enterprises to safeguard __________.

organisation of commerce and management multinational corporations global enterprises meaning and features of mncs public sector undertakings & global enterprises

  1. transfer of technology

  2. pricing

  3. dividend of payments

  4. all of the above

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Correct Option: D
Explanation:

A restrictive clause is a clause which functions as an adjective to identify the word it modifies. A restrictive clause is essential for the intended meaning. A restrictive clause is not offset with commas.

Who coined the term "globally integrated enterprise" in $2006$?

organisation of commerce and management multinational corporations global enterprises meaning and features of mncs public sector undertakings & global enterprises

  1. Bill gates

  2. Sam Palmisano

  3. Anil Ambani

  4. Azim Premji

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Correct Option: B
Explanation:

The globally integrated enterprise is a term coined in 2006 by Sam Palmisano, the then CEO of IBM corporation.

Which of the following is an disadvantage of MNC ?

organisation of commerce and management multinational corporations global enterprises meaning and features of mncs public sector undertakings & global enterprises

  1. Harm the National Interests

  2. Dominate Domestic Policies

  3. Adverse Effects on Life Style/Culture

  4. All of the above

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Correct Option: D
Explanation:

MNC has many disadvantages. It invest in most profitable sectors and disregard the national goals and priorities of the host country. Many domestic industries have to wind up due to the threat of MNC'S. 


They make people forget about their cultural heritage and tends to promote alien culture in host countries to sell their products.

Which of the following is an advantage of MNC?

organisation of commerce and management multinational corporations global enterprises meaning and features of mncs public sector undertakings & global enterprises

  1. Develop Monopolies

  2. Facilitate Inflow of Foreign Exchange

  3. Lead to Brain Drain in Developing Countries

  4. All of the above

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Correct Option: B
Explanation:

Foreign exchange transaction is a type of currency transaction that involves two countries. Generally, a foreign exchange transaction involves conversion of currency of one country with that of another. The conversion of currency in a foreign exchange transaction can be performed.

Promotion of Global co-operation through an MNC is an advantage gained by _________.

organisation of commerce and management multinational corporations global enterprises meaning and features of mncs public sector undertakings & global enterprises

  1. home country

  2. host country

  3. both country

  4. none of the above

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Correct Option: A
Explanation:

Home Country in international compensation, this is the country upon which an expatriate's compensation is based. It is usually the expatriate's home country or the country in which the employee's headquarters is located.