Tag: elements of business

Questions Related to elements of business

Multinational Corporation can be defined as a firm which____________.

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

  1. is having all the government benefits of the origin country

  2. is counted amongst the biggest industries in the host country

  3. owns companies in more than one country

  4. all of the above

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Correct Option: C
Explanation:

MNC is a company that owns or controls production in more than one nation. MNCs set up their branches and factories for production in regions where they can get cheap labor and other resources.

Which can be a disadvantage to the home country of MNC investment?

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

  1. Transfer of capital from home country to host country.

  2. No employment to the people.

  3. Both a&b

  4. None of the above

Show answer
Correct Option: B
Explanation:

Broader Market Base-By opening establishments or offices in several countries, multinationals increase their chances of reaching out to customers on a global scale, a benefit which other companies limited to regional offices and establishments do not have. The access to more customers gives them more opportunities to develop and cater their products and services that will fit the needs of potential customers.

Tax Cuts-Multinationals can enjoy lower taxes in other countries for exports and imports, an advantage that owners of international corporations can take at any given day. And although not all countries can have lower tariffs, there are those that give tax cuts to investors to attract more international companies to do business in these countries.

Job Creation-When international companies set up branches in other countries, employees and members of the team are locals. That said, more people are given employment opportunities especially in developing countries.

Multinational corporations. sometimes provide benefits to their home countries, except which one? 

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

  1. Boost the industrial development in home country

  2. Allow for production of cheaper components for theie products

  3. Marketing opportunities for the products produced in home country,

  4. Shift home country technology overseas via licensing

Show answer
Correct Option: D
Explanation:
Despite their benefits and advantages, multinational corporations have disadvantages and have often been criticised for exploiting their host countries for their resources.
  1. Enhanced Investment in Host Country.
  2. Tax Revenue for Home Country.
  3. Preferential Treatment Over Local Industry.
  4. Loss of Jobs at Home.

Multinational corporation's trade analysis differs from our conventional trade analysis because multinational corporation analyses ________.

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

  1. purely competitive markets rather than regular markets.

  2. the international movement of inputs as well the movement of finished goods.

  3. absolute cost differentials rather than comparative cost differentials.

  4. none of the above

Show answer
Correct Option: B
Explanation:

MULTINATIONAL COMPANIES IN INDIA -AN ANALYSIS. In the present day world of Globalisation, Multinational Companies have played an important role in the development of home countries where the MNCs are operating. ... Inviting and making ways for MNCs to operate in India will enhance the economic development of the country.

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

Show answer
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.

Show answer
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

Show answer
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

Show answer
Correct Option: B
Explanation:

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