Quiz on Multinational and Transnational Corporations

What is the main goal of a TNC?

• Global outlook

• Local trade

• National focus

• Regional expansion

What is a key characteristic of a TNC?

• Decentralized at local/national level

• Centralized at global level

• Focused on local markets

• Limited to one country

What type of business is an MNE?

• Multinational Enterprise

• Local Enterprise

• National Enterprise

• Regional Enterprise

What can counter the investor's decisions if other holdings are dispersed?

• No other owner

• A major competitor

• A government agency

• A financial institution

What is the main focus of FDI?

• Controlling interest in a foreign company

• Buying local businesses

• Investing in domestic markets

• Supporting small businesses

What does FDI not necessarily need?

• 100% ownership

• A local office

• A large workforce

• A marketing plan

What is a joint venture an example of?

• FDI

• Export

• Franchise

• Portfolio investment

Which mode of internationalization involves a franchise agreement?

• Franchise

• Export

• FDI

• Outsourced production

What is the purpose of a subsidiary company in FDI?

• To operate in a foreign market

• To sell products locally

• To manage domestic investments

• To handle local marketing

Which mode of internationalization involves producing a product under license?

• Outsourced production

• Export

• Franchise

• Portfolio investment