Quiz on Multinational and Transnational Corporations

What does MNC stand for?

• Multinational Corporation

• Multinational Company

• Multinational Community

• Multinational Council

How is an MNC different from a TNC?

• MNC has a centralized management structure

• MNC is only in one country

• MNC is a type of TNC

• MNC is smaller than TNC

What is the legal requirement for an MNC?

• Incorporating

• Decentralizing

• Centralizing

• Localizing

What is the main difference between MNC and TNC?

• Management structure

• Size

• Location

• Industry

What is the purpose of foreign direct investment by MNCs and TNCs?

• To seek resources or market

• To reduce costs

• To increase local employment

• To focus on one country

What does an investor take in a foreign company in FDI?

• Controlling interest

• Minor interest

• No interest

• Full interest

What does a joint venture involve?

• Two or more companies

• One company

• A single investor

• No companies

What is not a requirement for FDI?

• 100% ownership

• Controlling interest

• Foreign market

• Investment

What is a franchise agreement typically associated with?

• Independent businesses

• Sales office

• Ownership stake

• Greenfield investment

Which mode of internationalization involves ownership stake?

• Portfolio investment

• Export

• Franchise

• Outsourced production