Transnational Corporations and Their Impact

What is a key characteristic of transnational corporations (TNCs)?

• They avoid global networks.

• They operate in a single country.

• They focus only on local markets.

• They operate in multiple countries simultaneously.

How do TNCs contribute to raising living standards in host countries?

• By reducing wages.

• Through foreign direct investment.

• By avoiding local economies.

• By increasing unemployment.

What is one way TNCs help emerging countries develop?

• By focusing on local brands only.

• By transferring outdated technology.

• By withholding technology.

• By transferring advanced technology.

Why might TNCs promote higher environmental standards in less developed countries?

• To reduce production costs.

• To protect their brand image.

• To avoid local regulations.

• To increase pollution.

What is a common strategy used by TNCs to avoid taxes?

• Avoiding international markets.

• Using complex legal strategies.

• Hiring local accountants.

• Paying all taxes upfront.

How does foreign direct investment (FDI) by TNCs often lead to inequality?

• By reducing economic growth.

• By concentrating investment in specific areas.

• By evenly distributing resources.

• By increasing local competition.

What is a negative environmental impact of TNCs?

• Decreasing transportation pollution.

• Reducing consumerism.

• Promoting local products.

• Causing environmental degradation.

What is a human consequence of TNCs moving production to cheaper locations?

• Higher wages in developed countries.

• More local businesses thriving.

• Job losses in developed countries.

• Increased job opportunities in developed countries.

How do TNCs affect local producers when they enter a new market?

• They support local producers.

• They merge with local producers.

• They have no impact on local producers.

• They often crowd out local producers.

What is a common outcome for local brands when TNCs like Coca-Cola enter a market?

• Local brands dominate the market.

• Local brands become more popular.

• Local brands are often bought out.

• Local brands remain unaffected.