A Quiz on Multinational Firms

What defines a multinational corporation?

• A company that operates in multiple countries

• A company that operates only in its home country

• A company that operates in a single country but exports globally

• A company that operates solely in foreign markets

Which of the following is NOT a reason for a company to become multinational?

• Access to new markets

• Lower production costs

• Cultural diversity

• Government regulations

Which multinational corporation is known for its dominance in the technology sector?

• Coca-Cola

• Google

• Toyota

• Nestlé

Which of the following is NOT a potential benefit of multinational corporations for host countries?

• Technology transfer

• Job creation

• Increased competition for local businesses

• Access to global markets

Which term refers to the practice of a multinational corporation establishing ownership or control over foreign entities in various countries?

• Outsourcing

• Globalization

• Offshoring

• Foreign direct investment (FDI)

Which multinational corporation is known for its supply chain management expertise and efficient logistics operations?

• Walmart

• Amazon

• IKEA

• McDonald's

Multinational corporations often adapt their products and services to suit the local preferences and cultures of the countries they operate in.

• TRUE

• FALSE

The primary goal of multinational corporations is always to maximize profits, regardless of social or environmental consequences.

• TRUE

• FALSE

Multinational corporations can play a role in transferring technology and knowledge across borders, contributing to economic development in various countries

• TRUE

• FALSE

The process of a company expanding its operations into foreign countries is known as _______.