Multinational Companies

Q. Which of the following statements is correct with regard to MNCs?

1. MNCs are companies that produce only goods on a large scale.
2. MNCs are exempted from all government rules and regulations.
3. MNCs own or control production of goods or services in at least one country other than the home country.
4. MNCs are domestic companies that recruit foreign nationals.

Q.

Choose the most appropriate option. The most common route for investments by MNCs in countries around the world is to

1. set up new factories

2. buy existing local companies.

3. orm partnerships with local companies

Q. Why do MNCs enjoy market superiority?

1. Competition with peer companies
2. Huge capital
3. Access to larger markets
4. Government support

Q. Choose two factors that determine the location of production units of MNCs.

1. Cheap labour and other resources
2. Exchange rate
3. Proximity to markets
4. Composition

Q. Investment by foreign investors in buying new land, machinery, setting up factories for business purpose can be termed as Foreign Direct Investment.

1. True
2. False

Q. During which decade did India witness an influx of MNCs as a result of a major policy change?

1. 1990s
2. 1980s
3. 1970s
4. 1960s