 |
1 | |
An MNC is an organization does business in foreign countries. |
|
| | A) | True |
| | B) | False |
|
2 | |
An organization can become an MNC by merely rearranging the functions of its business. |
|
| | A) | True |
| | B) | False |
|
3 | |
Some MNCs are borderless. |
|
| | A) | True |
| | B) | False |
|
4 | |
The United Nations prefers the term multinational to the term transnational in describing MNCs. |
|
| | A) | True |
| | B) | False |
|
5 | |
Throughout most of the history of the U.S., free trade has been the dominant policy. |
|
| | A) | True |
| | B) | False |
|
6 | |
Which of the following can be an MNC? |
|
| | A) | A state-owned entity |
| | B) | A private company |
| | C) | A cooperative |
| | D) | All of the above |
|
7 | |
The average of foreign assets to total assets, foreign sales to total sales, and foreign employment to total employment is called the: |
|
| | A) | EPA. |
| | B) | environmental index. |
| | C) | TNA. |
| | D) | PNC. |
|
8 | |
According to the United Nations, about how many MNCs are there in the world? |
|
| | A) | 10,000 |
| | B) | 20,000 |
| | C) | 40,000 |
| | D) | 60,000 |
|
9 | |
The United Nations refers to the United States, Japan, and the European Union as the: |
|
| | A) | Triad. |
| | B) | NAFTA. |
| | C) | EU. |
| | D) | None of the above |
|
10 | |
Which of the following is the largest transnational corporation in assets among the largest 100 nonfinancial MNCs? |
|
| | A) | Exxon Mobil Corporation |
| | B) | General Electric |
| | C) | Chrysler AG |
| | D) | General Motors |
|
11 | |
Which of the following is the world's largest corporation in terms of the transnationality index (TNI)? |
|
| | A) | Unilever |
| | B) | Nestle SA |
| | C) | NTL |
| | D) | ABB |
|
12 | |
The fundamental motive of MNCs for doing business in foreign countries is: |
|
| | A) | sales dollars. |
| | B) | market share. |
| | C) | social performance. |
| | D) | profit. |
|
13 | |
Which of the following is a fundamental goal of host governments toward MNCs? |
|
| | A) | Developing a favorable balance of trade |
| | B) | Improving worker productivity. |
| | C) | Economic growth |
| | D) | All of the above |
|
14 | |
Which of the following is an inducement offered to MNCs by LDCs to establish manufacturing plants in their host countries? |
|
| | A) | Exemptions from import duties |
| | B) | Low-interest loans |
| | C) | Tax breaks |
| | D) | All of the above |
|
15 | |
Which of the following is an asset that an MNC can bring to a host country? |
|
| | A) | An increase in the GNP |
| | B) | Products that raise the standard of living |
| | C) | Employment |
| | D) | All of the above |
|
16 | |
The argument for free trade that gain will be maximized when each country specializes in producing products for which it has the greatest economic advantage is known as the: |
|
| | A) | law of comparative advantage. |
| | B) | law of diminishing returns. |
| | C) | social contract law. |
| | D) | countervailing forces law. |
|
17 | |
Which of the following have been practices of the U.S. government to protect U.S. companies from foreign competition? |
|
| | A) | Tariffs |
| | B) | Quotas |
| | C) | Prohibited imports of certain goods |
| | D) | All of the above |
|
18 | |
Which of the following is an example of a nontariff barrier to trade? |
|
| | A) | Excessive delays in inspecting imported goods |
| | B) | Unreasonable technical specifications for imported goods |
| | C) | Import quotas |
| | D) | All of the above |
|
19 | |
Classical economic doctrine assumes that when industries are relieved from foreign competition, these industries are likely to: |
|
| | A) | fail to make needed capital investments. |
| | B) | fail to innovate. |
| | C) | raise prices. |
| | D) | all of the above. |
|
20 | |
Bribes involving small amounts of money in order to encourage a lower-level worker to do his or her job are called: |
|
| | A) | honest graft. |
| | B) | lubrication bribes. |
| | C) | grease payments. |
| | D) | all of the above |