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Unit 1.6. MNC. - True of False quiz

Last updated almost 3 years ago

10 questions

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Question 1

1.

Multinational companies can intensify competition in the host country, thereby affecting the survival of local businesses.

True

False 

Question 2

2.

A business that has headquarters in one country but operates or is legally registered in two or more countries is known as a strategic alliance.

True 

False 

Question 3

3.

Multinational companies spend money on foreign direct investment (FDI) in overseas markets.

True 

False 

Question 4

4.

A business that only exports products to overseas markets is not classified as a multinational company.

True 

False 

Question 5

5.

The growing presence of multinational companies, and the convergence of habits and tastes brought about by globalization, can cause a loss of local diversity.

True 

False 

Question 6

6.

Improved communications, the reduction in barriers to trade, and the increasing reliance on the Internet are all reasons for the rapid growth of multinational companies.

True 

False 

Question 7

7.

Large multinational companies can account for a significant number of job opportunities in the host country.

True 

False 

Question 8

8.

Foreign direct investment (FDI) refers to cross-border investment in which an overseas company establishes an ongoing and significant stake in its operations in another country.

True 

False 

Question 9

9.

A highly profitable multinational company benefits the host country’s government as they pay larger amounts of corporate taxes.

True 

False 

Question 10

10.

To be classified as a multinational company, the business must operate in more than two different countries.

True 

False 