Globalisation and the Indian Economy Test

Result

Globalisation and the Indian Economy Test - 20

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Weekly Quiz Competition

Question 1
1 / -0

The characteristics feature of a multinational enterprise (MNE) include __________.

A
it owns its subsidiaries in other countries

B
it may operate in another country

C
these are established due to difference in the rate of return on capital between the two countries

D
both (a) and (b)

Solution

A multinational company is one which has its main office in the home country and has many branches or subsidiaries in two or more country. Hence, the characteristic feature of a MNE include it owns its subsidiaries in other countries as well as it may operate in another country.
Question 2
1 / -0

Which of these is not a reason for dumping.

A
to penetrate in new overseas market.

B
to utilize surplus capacity

C
to compete out rivals in foreign market.

D
to encourage smuggling of goods
Question 3
1 / -0

For multinational activity, internalization means __________.

A
to undercut the prices of local producers in overseas markets as multinational have an approach and exposure to global market and their scale of production is large enough.

B
to set up an overseas production operation because of the fear of franchising operations that has been given to local firms already in the market.

C
exploiting a well-established global brand image to dominate overseas markets.

D
all of the above

Solution

Internalisation is the process of increasing the involvement of enterprises in international markets. Hence, for multinatinoal activity, internalisation means exploiting a well-established global brand image to dominate overseas markets.
Question 4
1 / -0

The multinational corporations provides lot of benefits as it ___________.

A
increases the transfer of technology between nations

B
they always produce the goods

C
host countries progress is mostly dependent on them

D
none of the above

Solution

A multinational company is one which has its main office in the home country and has many branches or subsidiaries in two or more country. Its main advantage is it increases the transfer of technology between the nations.
Question 5
1 / -0

Multinational Corporations can be defined as a firm which ________________.

A
is having all the government benefits of the origin country

B
is counted amongst the biggest industries in the host country

C
owns companies in more than one country

D
all of the above

Solution

A multinational company is one which has its main office in the home country and has many branches or subsidiaries in two or more country. Hence, MNCs can be defined as a firm which owns companies in more than one country.
Question 6
1 / -0

What can be a disadvantage to the home country of the MNC's investing in other countries?

A
Transfer of capital from home country to host country.

B
No employment to the people.

C
Both a and b

D
None of the above

Solution

MNC refers to those organisations who have their headquarters in the home country and subsidiaries in two or more country. When a MNC invests in other countries it directly increases employment in the countries where investment is done. Hence, it can be a disadvantage to the home country as employment decreases..
Question 7
1 / -0

Home location for most of the world's MNC is at __________.

A
America

B
America and Asia

C
Europe

D
Singapore

Solution

A MNC is an organisation which has its main headquarters in the home country but has its subsidiaries in two or more countries. Many MNCs are located mostly in America. Hence, home location for most of the world's MNC is at america.
Question 8
1 / -0

Which of the following is not a key advantage of an MNC?

A
Technology movement

B
Support enterprises in host countries

C
Product duplication

D
Provide services to professionals
Solution
MNC is an organisation which has its head office in the home country and subsidiaries in two or more countries. The advantage of MNC are:
Technology movement.
Support enterprises in host countries.
Provide services to professionals.etc.
But it does not do product duplication.
Question 9
1 / -0

A MNC is defined by an organisation ___________.

A
carrying out production in more than one country

B
having sales in more than one country

C
having a multi-ethnic workforce

D
having-suppliers in more than one country

Solution

MNC refers to an organisation which has its headquarter in home country and operates in two or more countries through its subsidiaries being set up there. Hence, a MNC is defined by an organisation carrying out production in more than one country.
Question 10
1 / -0

Which of the following is an example of a multinational corporation?

A
McDonalds

B
Nirma

C
World trade organization

D
United Nations Organization

Solution

A MNC is an organisation which has its main headquarters in the home country but has its subsidiaries in two or more countries. E.g. McDonalds have its main headquarters in USA but have its branches in many countries of the world.

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Re-Attempt Weekly Quiz Competition

Globalisation and the Indian Economy Test - 20

Result

Globalisation and the Indian Economy Test - 20

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SHARING IS CARING

Question 1

it owns its subsidiaries in other countries

it may operate in another country

these are established due to difference in the rate of return on capital between the two countries

both (a) and (b)

Solution

Question 2

to penetrate in new overseas market.

to utilize surplus capacity

to compete out rivals in foreign market.

to encourage smuggling of goods

Question 3

to undercut the prices of local producers in overseas markets as multinational have an approach and exposure to global market and their scale of production is large enough.

to set up an overseas production operation because of the fear of franchising operations that has been given to local firms already in the market.

exploiting a well-established global brand image to dominate overseas markets.

all of the above

Solution

Question 4

increases the transfer of technology between nations

they always produce the goods

host countries progress is mostly dependent on them

none of the above

Solution

Question 5

is having all the government benefits of the origin country

is counted amongst the biggest industries in the host country

owns companies in more than one country

all of the above

Solution

Question 6

Transfer of capital from home country to host country.

No employment to the people.

Both a and b

None of the above

Solution

Question 7

America

America and Asia

Europe

Singapore

Solution

Question 8

Technology movement

Support enterprises in host countries

Product duplication

Provide services to professionals

Solution

Question 9

carrying out production in more than one country

having sales in more than one country

having a multi-ethnic workforce

having-suppliers in more than one country

Solution

Question 10

McDonalds

Nirma

World trade organization

United Nations Organization

Solution

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