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

A MNC is defined by an organization ___________.

  1. carrying out production in more than one country.

  2. having sales in more than one country.

  3. having a multi-ethnic workforce

  4. having- suppliers in more than one country
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

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

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

Which of the following is not key advantage of MNC?

  1. Technology movement

  2. Support enterprises in host countries

  3. Production duplication

  4. Provided services of professionals
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Multinational organisations have the ability to source labor cheaply. The ability to operate in multiple different companies builds in the ability to capitalize on cheap labor markets. 

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

What is the reason for MNC's Growth?
A. Reduce transport and distribution costs
B. Meet different rules and regulations.
C. Avoid trade barriers
Select the correct answer from the options given.

  1. A and B

  2. B and C

  3. C and B

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
  • Location – MNCs have their headquarters in home countries and have their operational division spread across foreign countries to minimize the cost.
  • Capital Assets – Major portion of the capital assets of the parent company is owned by the citizens of the company’s home country.
  • Board of Directors – Majority of the members of the Board of Directors are citizens of the home country.
  • MNCs are large-sized corporation and exercise a great degree of economic dominance.
Multiple choice elements of business multi national corporations advantages and disadvantages of mncs meaning and definition multinational companies - meaning and features

_________ is a corporation enterprises that manages production or delivers services in more than one country.

  1. A Multinational Corporation(MNC)

  2. Multinational Enterprise(MNE)

  3. (A) or (B)

  4. Neither (A) nor (B)
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

"International business" is also defined as the study of the internationalisation process of multinational enterprises. A multinational enterprise (MNE) is a company that has a worldwide approach to markets, production and/or operations in several countries. and A multinational corporation or worldwide enterprise is a corporate organisation which owns or controls production of goods or services in at least one country other than its home country

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

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

  1. MNCs bring inward investment to countries that are not their home base.

  2. MNCs bring with them new ideas and new techniques that can help to improve the quality of production and help boost the quality of human capital in the host country

  3. MNCs pay large sums in taxes to the host government

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation


  • Access to Consumers – Access to consumers is one of the primary advantages that the MNCs enjoy over companies with operations limited to the smaller region. Increasing accessibility to wider geographical regions allows the MNCs to have a larger pool of potential customers and help them in expanding, growing at a faster pace as compared to others.
  • Accesses to Labor – MNCs enjoy access to cheap labor, which is a great advantage over other companies. Taxes and Other Costs – Taxes are one of the areas where every MNC can take advantage. Many countries offer reduced taxes on exports and imports in order to increase their foreign exposure and international trade. 
  • Overall Development – The investment level, employment level, and income level of the country increases due to the operation of MNC’s. Level of industrial and economic development increases due to the growth of MNCs.
  • Technology – The industry gets the latest technology from foreign countries through MNCs which help them improve on their technological parameter.
  •  R&D – MNCs help in improving the R&D for the economy.
  • Exports & Imports – MNC operations also help in improving the Balance of payment. This can be achieved by the increase in exports and a decrease in the imports.
  • MNCs help in breaking protectionism and also helps in curbing local monopolies, if at all it exists in the country.

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

How is an MNC defined?

  1. A MNC is a company that owns or controls production in more than one district in a country

  2. A MNC is a company that owns or controls production in more than one state in a country

  3. A MNC is a company that owns or controls production in more than one nation

  4. All of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

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


A multinational corporation (MNC) has facilities and other assets in at least one country other than its home country. 

A multinational company generally has offices and/or factories in different countries and a centralized head office where they coordinate global management.

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

Which of the following Indian Companies takes over foreign ventures?

  1. Tata group

  2. Birla group and Parry group

  3. Thapar group and Kirloskar

  4. All the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Many major Indian conglomerates, including Tata, Birla, and others, have historically expanded by acquiring foreign companies to increase their global footprint.

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

The first MNC that came to Indian shores was _______.

  1. the East India Company

  2. the Dutch Company

  3. the French Company

  4. none of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

East India Company was the first MNC established in 1600 and after that on March 20, 1602, the Dutch East India Company was the second MNC in India and the largest company. 

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

For multinational activity, 'International' means________________.

  1. to undercut the prices all of 'local' producers in overseas markets as multinational have an approach and exposure to global market and their scale of production is large enough.

  2. to set up an overseas production operation because of the fear of franchising operation that has been given to 'local' firms already in the market.

  3. exploiting a well-established global brand image to dominate overseas markets.

  4. all of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Multinational companies have offices and/or factories in different countries and usually have a centralized head office where they coordinated international management.

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

Which of these is an Indian Multinational Company?

  1. Hindustan Unilever

  2. Videocon

  3. Cargill

  4. Tesco
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

One of Indian Multinational companies Videocon Industries limited is a large diversified Indian multinational company headquartered in Mumbai. The group has 17 manufacturing sites in India and plants in Mainland China, Poland, Italy and Mexico. It is the third largest picture tube manufacturer in the world. The group is a US$5.5 billion global conglomerate.