Multinational Corporations Grade 8

1. What is a multinational corporation (MNC)?

• A local business
• A government agency
• A company operating in multiple countries
• A non-profit organization

2. Why do MNCs often locate in multiple countries?

• To avoid paying taxes
• To increase their market reach
• For the fun of traveling
• To hire international spies

3. What is globalization?

• The process of local businesses expanding
• The spreading of local cultures
• The integration of economies around the world
• A type of global weather pattern

4. How can MNCs affect local economies?

• By decreasing job opportunities
• By taking over local government
• By providing more job opportunities
• By causing natural disasters

5. Which of the following is a benefit of MNCs in developing countries?

• Increased cultural conflicts
• Environmental degradation
• Improved infrastructure and job opportunities
• Decreased local business competition

6. What is one negative effect of MNCs on host countries?

• They increase the cost of living
• They can dominate the market, hurting local businesses
• They only hire foreign employees
• They decrease internet accessibility

7. What role do MNCs play in globalization?

• They decrease global trade
• They promote cultural isolation
• They facilitate international trade and investment
• They prevent cultural exchanges

8. Why might a country welcome MNCs?

• To reduce their population
• To increase employment and economic development
• To decrease its exports
• To isolate itself from global trends

9. How can MNCs impact the environment?

• By promoting wildlife conservation
• By increasing local farming
• By causing pollution and resource depletion
• By reducing global temperatures

10. What is corporate social responsibility (CSR)?

• A company's responsibility to its shareholders only
• A tax policy
• A company's initiative to assess its social impacts
• A type of corporate law