Multinational Companies Quiz by Shubhrata Shrestha | Aug 20, 2025 | 0 comments Multinational Companies Quiz 1. What is the primary feature of a multinational company (MNC)? a) Operates only in one country b) Produces goods exclusively for exports c) Operates in two or more countries d) Specializes in only one industry None 2. Which of the following is not a reason businesses become MNCs? a) Achieving economies of scale b) Accessing a larger customer base c) Avoiding protectionist policies d) Increasing government control over operations None 3. A key benefit of MNCs to host countries is: a) Profit repatriation b) Tax avoidance c) Technology and knowledge transfer d) Cultural homogenization None 4. Which of the following is a negative impact of MNCs? a) Infrastructure development b) Job creation c) Labour exploitation d) Improved consumer choice None 5. How do MNCs improve consumer welfare in host countries? a) By increasing import tariffs b) By offering better products at competitive prices c) By reducing consumer choices d) By limiting access to foreign products None 6. What is the term for sending profits back to the home country? a) Balance of payments surplus b) Technology transfer c) Profit repatriation d) Foreign direct investment None 7. Which of the following is an environmental concern linked to MNCs? a) Increased consumer choice b) Pollution due to weak regulations c) Technology transfer d) Improved trade balance None 8. How can host governments maximize benefits from MNCs? a) Allowing unrestricted resource use b) Enforcing labour and environmental laws c) Reducing corporate taxes to zero d) Ignoring monopolistic practices None 9. Which of these best describes “transfer pricing”? a) Shifting profits to low-tax countries b) Transferring technology to local firms c) Importing products from other countries d) Charging higher prices for exports None 10. One way MNCs support local businesses in host countries is by: a) Eliminating local competitors b) Sourcing raw materials and services domestically c) Repatriating profits d) Avoiding taxes None Time's up Submit a Comment Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Save my name, email, and website in this browser for the next time I comment. Δ
