Week 5 summary sheet

What is one of the benefits of multinationals to a host country regarding technology?

• Multinationals often pay very low wages.

• Multinationals encourage the exploitation of less developed countries.

• Multinationals provide technical help and training to local suppliers.

• Multinationals cause environmental damage.

How can multinationals contribute to a host country's education and skills improvement?

• By causing environmental damage.

• By exploiting child labor and poor working conditions.

• By providing training for their workers and sometimes funding government education initiatives.

• By repatriating profits to the country where they are based.

What is a drawback of multinationals for a host country in terms of labor practices?

• They increase income and employment.

• They may use child labor and have poor working conditions in their factories.

• They help countries increase their foreign currency reserves.

• They provide technical help and training to local suppliers.

What is a concern raised by environmentalists about multinationals in host countries?

• They improve the host country's foreign currency reserves.

• They are often involved in extraction industries which can be destructive to the environment.

• They provide extensive benefits to local suppliers.

• They are accountable to pressure groups which improves their operations.

What does the term "repatriation of profits" refer to in the context of multinationals?

• The process of multinationals paying taxes to the host country.

• The benefits of increased income and employment in the host country.

• The profits made abroad by multinationals being sent back to the country where they are based.

• The training and technical help provided by multinationals to local suppliers.

What is the role of governments in relation to public services?

• To reduce the number of public services

• To provide a range of public services

• To privatize all public services

• To ignore the public services

Which of the following is NOT listed as a public service in the document?

• Social security

• Health

• Retail stores

• Defence

How does government spending generally influence businesses?

• It has no impact on businesses

• It is welcomed by businesses because it can lead to more jobs and demand

• It is always opposed by businesses

• It reduces the number of businesses in the economy

What can be a consequence of governments constraining levels of public spending?

• Increased demand for luxury goods

• Higher income for consumers

• Negative impact on businesses and lower incomes for consumers

• Expansion of government projects

What type of tax do sole traders and partnerships pay?

• Corporation tax

• Income tax

• Indirect tax

• Fiscal tax