MNC 1-5

Explain the difference between MNC and Transnational Corporations

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Answer explanation

Decision making

Decision making in a multinational is made in the mother country and should be effected in all the subsidiaries globally. On the other hand, decision making in a transnational is made by individual transnational corporations.

Local markets

Multinationals face restrictions when it comes to local markets since they have centralized management systems. On the other hand, transnational companies are free to make decisions independently based on local markets.

Which of the following is a driver of globalization?

• Trade barriers and controls on inflows of foreign direct investment.

• Weak competition.

• Technological advance.

• Economies of scale are being exploited to the maximum.

The following are Hofstede’s dimensions of culture EXCEPT

• power distance

• femininity vs. masculinity

• paradoxicality

• individualism vs. collectivism

_______ is the degree to which members of a collective expect power to be distributed equally.

• Uncertainty Avoidance

• Short-Term Orientation

• Long-term Orientation

• Power Distance

Publicly rewarding a specific employee’s performance might be seen poorly by the employee and others because of which cultural dimension?

• power distance

• uncertainty avoidance

• femininity vs. masculinity

• individualism vs. collectivism

According to Hofstede, national cultures such as Singapore, Hong Kong, and Sweden, in which people are more accepting of innovative ideas and eccentric or deviant behavior, are which of the following?

• High in uncertainty avoidance

• Low in uncertainty avoidance

• More masculine

• High power distance

List down 3 stages of industrialization

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Answer explanation

- Pre-industrial

- Industrial

- Postindustrial

In a centrally planned economy, who holds power over the economy?

answer choices

• The people

• The government 

• Beyonce

• The traditions of your ancestors 

Which of the following is an economic system in which the government and people are used to decide how to use scarce resources?

• Market economy

• Centrally planned economy

• Traditional economy

• Mixed economy

A post-industrialized society, which is the next step after an industrialized society, is one in which the service sector dominates the manufacturing sector.

• False

• True