Tag: advantages and disadvantages of mncs

Questions Related to advantages and disadvantages of mncs

The advantages of Multinational corporation is ________.

elements of business multi national corporations advantages and disadvantages of mncs meaning and definition multinational companies - meaning and features

  1. business gets management expertise from MNC.

  2. always enjoy political harmony in host countries in which their subsidiaries operate.

  3. enjoy subsidies from government in order to conduct worldwide operations.

  4. both a&b

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Correct Option: A
Explanation:

Advantages of multinational companies. Multinationals create jobs which boosts the local economy and more workers to tax. They bring expertise in that skills of workforce are improved, some may use IT that would never have before or other skills now deemed basic by the western or developing world.

Home lacation for most of the world's MNC is at _________.

elements of business multi national corporations advantages and disadvantages of mncs meaning and definition multinational companies - meaning and features

  1. america

  2. america and Asia

  3. europe.

  4. singapore.

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Correct Option: A
Explanation:

There's approximately 30 million businesses in the USA today.

Which is not likely to be a benefit that host countries will obtain for MNCs?

elements of business multi national corporations advantages and disadvantages of mncs meaning and definition multinational companies - meaning and features

  1. Technology Transfer

  2. Import substitution

  3. Tax revenues

  4. Job creation

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Correct Option: C
Explanation:

The potential benefits of MNCs on host countries include:

Provision of significant employment and training to the labour force in the host country. MNCs add to the host country GDP through their spending, for example with local suppliers and through capital investment.

Which global firm has an Indian as its chief executive?

elements of business multi national corporations advantages and disadvantages of mncs meaning and definition multinational companies - meaning and features

  1. HP

  2. IBM

  3. Microsoft

  4. None of the above

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Correct Option: A
Explanation:

A global firm which has an Indian as chief executive is Microsoft, whoes CEO is Satya Nadella 

Ford, Toyota, Honda and Volkswagen, oil companies like Shell, BP and Exxon Mobil, technology companies like Dell, Microsoft, Hewlett Packard and Canon and food and drink companies such as Coca Cola and McDonalds can be classified as __________.

elements of business multi national corporations advantages and disadvantages of mncs meaning and definition multinational companies - meaning and features

  1. Statutory corporation

  2. Multinational corporation

  3. Public sector corporation

  4. None of the above

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Correct Option: B
Explanation:

A multinational corporation or worldwide enterprise is a corporate organization which owns or controls production of goods or services in at least one country other than its home country.

At present, 100 percent FDI allowed in_________.

elements of business multi national corporations advantages and disadvantages of mncs meaning and definition multinational companies - meaning and features

  1. Defence

  2. Drugs and pharmaceuticals

  3. Banks

  4. Insurance

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Correct Option: B
Explanation:

100% FDI is allowed in Chemical sector under automatic route.

Which of the following statement is incorrect?
$(1)$ MNCs have less impact on the development process of the under developed countries.
$(2)$ Some MNCs may be 'footloose' i.e., to say - they might locate in a country to gain the tax or grant advantages but then move away when these run out.
Select the correct answer from the options given.

elements of business multi national corporations advantages and disadvantages of mncs meaning and definition multinational companies - meaning and features

  1. $(2)$ only

  2. $(1)$ only

  3. Both $(1)$ & $(2)$

  4. Neither $(1)$ nor $(2)$

Show answer
Correct Option: B
Explanation:

Multinationals provide an inflow of capital into the developing country. E.g. the investment to build the factory is counted as a capital flow on the financial account of the balance of payments. This capital investment helps the economy develop and increase its productive capacity.

Which of the following is/are advantage of MNC's?

elements of business multi national corporations advantages and disadvantages of mncs meaning and definition multinational companies - meaning and features

  1. The activities of MNC's in the guest countries may be harmful to the national interests as MNC's are solely guided by the profit maximisation.

  2. MNC's restrict competition and acquire monopoly power in certain areas in the host countries.

  3. The activities of MNC's in the host countries may be harmful to the national interests as MNC's are solely guided by the profit maximization.

  4. MNC's help the most countries to reduce the imports and promote the exports by raising domestic production.

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Correct Option: D
Explanation:

Advantages of Multinational Corporations in developing countries.

  • Multinationals provide an inflow of capital into the developing country. E.g. the investment to build the factory is counted as a capital flow on the financial account of the balance of payments. This capital investment helps the economy develop and increase its productive capacity.
  • The model of growth suggests that this level of investment is important for determining the level of economic growth. 
  • The inflows of capital help to finance a current account deficit. (Basically, this means that foreign investment enables developing countries to buy imports)
  • Multinational corporations provide employment. Although wages seem very low by Western standards, people in developing countries often see these new jobs as preferable to working as a subsistence farmer with even lower income..
  • Multinational firms may help improve infrastructure in the economy. They may improve the skills of their workforce. Foreign investment may stimulate spending in infrastructure such as roads and transport.
  • Multinational firms help to diversify the economy away from relying on primary products and agriculture – which are often subject to volatile prices and supply.

MNCs have great impact on the development process of the Underdeveloped countries.

elements of business multi national corporations advantages and disadvantages of mncs meaning and definition multinational companies - meaning and features

  1. False

  2. True

  3. Partly false

  4. None of above

Show answer
Correct Option: B
Explanation:

Advantages of Multinational Corporations in Under developing countries- 
Multinationals provide an inflow of capital into the developing country. E.g. the investment to build the factory is counted as a capital flow on the financial account of the balance of payments. This capital investment helps the economy develop and increase it's productive The inflows of capital help to finance a current account deficit.  Multinational corporations provide employment. 

Some MNCs may be 'footloose'; this means that they might locate in a country to gain the tax or grant advantages then move away when these run out.

elements of business multi national corporations advantages and disadvantages of mncs meaning and definition multinational companies - meaning and features

  1. True

  2. False

  3. Partly false

  4. Partly true

Show answer
Correct Option: A
Explanation:

The footloose industry is a general term for an industry that can be placed and located at any location without effect from factors such as resources or transport. These industries often have spatially fixed costs, which means that the costs of the products do not change despite where the product is assembled.