Impact of MNCs

Q. Which of the following factors enable MNCs to produce better quality products at lower prices?

1. Availability of fund
2. Market access
3. Advanced technology
4. Large customer base

Q. Why do the governments of various countries offer incentives to MNCs? Choose the appropriate option.

1. To make public ventures more profitable
2. To attract more investment to the country
3. To make the domestic market more competitive
4. To offer capital to the new businesses

Q. Which of the following factors helps MNCs in reducing transaction costs?

1. Investment in human resource
2. Operation in multiple countries
3. Incentives from the government
4. Use of high-end technology

Q. Which of the following could be a negative impact on local producers due the growth of MNCs?

1. Restriction on business operation
2. Losses due to fierce competition
3. Restriction in new investment
4. More scrutiny by the government

Q. MNCs prefer to operate in underdeveloped countries to avoid stringent laws on pollution and use of natural resources.

1. True
2. False