TACN3

What is a key characteristic of Multinational Corporations (MNCs)?

• They only operate in their home country.
  

• They function exclusively in developing nations.
  

• They operate in multiple countries with international supply chains.

• They do not prioritize profit maximization.

How do MNCs typically differ from TNCs^?

•  MNCs have a strong national identity, while TNCs operate without a specific home base.

• MNCs focus on local markets more than TNCs.
  

• TNCs are smaller and less influential than MNCs.
  

•  MNCs avoid operating in multiple countries.

What is NOT a key reason for the existence of MNCs?

• Market expansion
  

• Cost reduction

• Access to resources

• Reducing their brand influence

Which of the following is an example of an MNC in the technology sector?

• Nike
  

• McDonald's
  

• Apple

• Unilever

What is a potential disadvantage of MNCs dominating industries?

• They increase competition for local businesses.

• They often reduce competition, making it hard for smaller brands to grow.

• They have no impact on pricing or innovation.

• They help new companies gain brand recognition easily.

How do MNCs benefit from global supply chains?

• They outsource production and sourcing to reduce costs.

  
  

• They avoid international markets to save expenses.

• They rely only on domestic manufacturing.

• They focus only on high-cost production methods.

What did the COVID-19 pandemic highlight about global supply chains?

• Global supply chains are completely stable.
  

• Factory shutdowns and transport delays disrupted global trade.

• MNCs were unaffected by supply chain issues.
  

• All production remained in high-cost countries.

What is a benefit of Foreign Direct Investment (FDI) by MNCs?

• It discourages job creation.
  

• It brings new technology and infrastructure to local markets.

•  It only benefits the home country of the MNC.

• It reduces economic development.

What is a major ethical issue associated with MNCs?

• They focus too much on sustainability.
  

• They are required to pay higher taxes than local businesses.

• They engage in tax avoidance to reduce their tax burden.

• They do not contribute to economic growth.

What was introduced in 2021 to address corporate tax avoidance?

• A total ban on MNCs operating internationally.

  
  

• A minimum corporate tax rate of 15%.

• A new law to remove all foreign investments.

• A complete tax exemption for global companies.