What is a Multinational Corporation and what are its characteristics?

Here are the answers to the multiple-choice questions:

PART A: MULTIPLE CHOICE.

Q1: What is Multinational Corporation?

• A. A company that has a business operation and office in its own country.
• B. A company that has a business operation and its main office in another country.
• C. A company that has a business operation in other country other than its own.
• D. A company that does not operate in any other country other than its own country.

The best answer is C, as a multinational corporation operates in at least one country other than its home country.

• Answer: C

Q2: Which is NOT a characteristic of a Multinational Corporation?

• A. Pay taxes in countries in which it operates.
• B. Direct investment in foreign countries.
• C. Business conducted in various languages.
• D. Accused of positive and negative impacts on economic growth.

Option D describes an effect or consequence of an MNC's operations, not a defining characteristic of what an MNC is.

• Answer: D

Q3: Which of the following statement below represents Multinational Corporation 'Main Organisational Type'?

• A. A Transnational Corporation.
• B. A Centralise National Corporation.
• C. A National Division within a Corporation.
• D. All of the above.

A Transnational Corporation (TNC) is a specific and often considered advanced type of Multinational Corporation, characterized by decentralized decision-making and global integration.

• Answer: A

Q4: What is Transnational Corporation?

• A. A company that has a business operation and office in its own country.
• B. A company that has a business operation globally and have its own management.
• C. A company that has a business operation in other country other than its own country.
• D. A company that does not operate in any other country other than its own country.

A Transnational Corporation operates globally with decentralized management, meaning decision-making is distributed among its various international offices.

• Answer: B

Q5: Multinational Corporation generates how many percentages of its revenue overseas?

• A. 20%
• B. 30%
• C. 25%
• D. 35%

While the exact percentage varies greatly among MNCs, a significant portion of revenue often comes from overseas operations. 30% is a plausible figure representing a substantial international presence.

• Answer: B

Q6: The history of Multinational Company is linked with the history of ____.

• A. Imperialism
• B. Provincialism
• C. Communism
• D. Colonialism

Early forms of multinational corporations, such as trading companies, were closely tied to the expansion and economic exploitation characteristic of colonialism.

• Answer: D

Q7: The association of workers in a particular trade is known as;

• A. Tradesman
• B. Tribesman
• C. Labour Union.
• D. Trade association

A Labour Union (also known as a Trade Union) is an organization of workers formed to protect and advance their interests.

• Answer: C

Q8: What leads to 'Economic Diversification' for an increase income inflow for the government and reduce dependence?

• A. Industries
• B. Agriculture
• C. Mining
• D. Trade Union.

Economic diversification involves expanding into various sectors or industries to reduce reliance on a single one, thereby increasing income stability and reducing dependence.

• Answer: A

Q9: State one 'advantage of Online Social Networks'

• A. Promote trade and business.
• B. Spread bad influence.
• C. Makes people lazy.
• D. Cyber bullying.

Online social networks provide platforms for businesses to market products, engage with customers, and facilitate trade.

• Answer: A

Q10: State one 'disadvantage of 'Global Culture' in PNG.

• A. Cyber bullying.
• B. Bad influence.
• C. Make money.
• D. PNG culture dying.

A significant concern with the spread of global culture is the potential erosion or loss of unique local traditions, languages, and customs.

• Answer: D