mini game

MNCs often invest in countries with high economic growth.

• True

• False

1. Which of these is a common reason for MNCs to invest in a foreign country?

• • Gaining access to a new market

• • Gaining access to cheap labor

• • Both

1. Which factor might discourage FDI in a country?

• • Political Stability

• • High Bureaucracy

Which type of ownership structure gives an MNC complete control over its foreign operations?

• • Joint Venture

• Wholly-Owned Subsidiary

• • Both

11.  If an MNC is concerned about profit repatriation, which FDI strategy might it adopt to minimize exchange rate risks?

• • Sourcing local working capital in the host country

• • Investing in high-interest regions

• Using personal funds for capital investment

• • Opting for high-dividend payment options

11. What is a risk-adjusted ROI in FDI?Why might an MNC choose to partner in a joint venture rather than go solo?

• • To reduce costs

• • To comply with local regulations

• • Both

Which factor directly affects FDI decisions in the manufacturing industry?

• • Infrastructure Quality

• • Exchange Rates

• None of the above

Why might an MNC be hesitant to invest in a market with high currency volatility?

• • It increases profitability

• • It leads to unpredictable costs and earnings

Which FDI strategy might an MNC use if it requires strong local market knowledge?

• • Joint Venture

• • Wholly-Owned Subsidiary

• • Both

21. When entering a market with high competition, an MNC is likely to consider:

• • Local consumer demand only

• • The competitive landscape and presence of rival firms