Question 1

What are some positive impacts of MNCs on the local economy?

Accepted Answer

Higher employment, less poverty, lower crime, and improved infrastructure

Answer

Lower wages and poor working conditions

Answer

Increased competition among local firms

Answer

Environmental disasters and loss of traditions

Question 2

Which of the following is a negative impact of MNCs on local labor?

Accepted Answer

Creates wage inflation for local businesses

Answer

Improved working conditions

Answer

Better training and skills development

Answer

Increased job opportunities

Question 3

How do MNCs contribute to the national economy?

Accepted Answer

They generate revenue for the local government through taxes.

Answer

They always reduce competition for local firms

Answer

They typically hurt domestic job markets

Answer

They have no impact on GDP

Question 4

What is a potential negative consequence regarding cultural impact from MNCs?

Accepted Answer

MNCs may impose their culture on the host country

Answer

They promote local cultural practices

Answer

They require all local firms to adopt their practices

Answer

They improve cultural diversity

Question 5

What is 'brain drain' in the context of MNCs?

Accepted Answer

Skilled individuals leave their home nations for better opportunities elsewhere

Answer

An increase in local education standards

Answer

MNCs providing jobs to local skilled workers

Answer

The return of expatriates to their home countries

Question 6

What can happen to local firms when faced with competition from MNCs?

Accepted Answer

Some local businesses may fail due to inability to compete

Answer

Local firms always thrive alongside MNCs

Answer

Local firms gain market dominance

Answer

All competition will cease

Question 7

Why might MNCs engage in transfer pricing?

Accepted Answer

To manipulate profits between subsidiaries and minimize tax liabilities

Answer

To increase transparency in their transactions

Answer

To ensure fair local pricing

Answer

To boost local employment

Question 8

What does FDI stand for in the context of MNCs?

Accepted Answer

Foreign Direct Investment

Answer

Favorable Domestic Integration

Answer

Financial Development Investment

Answer

Fiscal Domestic Investment

Question 9

What role do MNCs play in technology transfer?

Accepted Answer

They introduce new technologies and skills to host economies

Answer

They reduce innovation in local firms

Answer

They typically avoid sharing technology

Answer

They only focus on traditional methods

Question 10

How can the presence of MNCs influence local wages?

Accepted Answer

They can push wages up, improving the overall standard of living

Answer

They only create low-skill jobs

Answer

They have no impact on wages

Answer

They always lower wages

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