Question 1

Adopting a policy to encourage FDI may be a method for a country to quickly improve its technological base.

Accepted Answer

A) True 
 B)False

Question 2

What are the key characteristics you would expect to see at each stage of the product life cycle?

Accepted Answer

1) Launch - few substitutes; high price;

Question 3

Which of the following is not a market driver of globalisation?

Accepted Answer

A)  Per capita convergence of incomes across industrialised countries 
B)  Organisations behaving as global consumers 
C)  A push to develop global advertising 
D)  Reduced trade barriers 
A)  Per capita convergence of incomes across industrialised countries 
B)  Organisations behaving as global consumers 
C)  A push to develop global advertising 
D)  Reduced trade barriers

Question 4

The whole of Africa received only 3% of world FDI in 2013.

Accepted Answer

A) True 
 B)False

Question 5

Accessing global markets can

Accepted Answer

A)  allow firms to learn from experience. 
B)  exploit competitive advantages. 
C)  spread risk. 
D)  all of the above 
A)  allow firms to learn from experience. 
B)  exploit competitive advantages. 
C)  spread risk. 
D)  all of the above

Question 6

The location of MNCs depends entirely on factor prices.

Accepted Answer

A) True 
 B)False

Question 7

All of the following are government drivers of globalisation, except for

Accepted Answer

A)  creation of trading blocs. 
B)  improvements in business travel. 
C)  reduction of tariff barriers. 
D)  privatisation in state- dominated economies. 
A)  creation of trading blocs. 
B)  improvements in business travel. 
C)  reduction of tariff barriers. 
D)  privatisation in state- dominated economies.

Question 8

Which of the following helps to explain how FDI can help to alleviate the foreign exchange gap?

Accepted Answer

A)  MNC imports will bring in foreign exchange earnings. 
B)  FDI brings in capital. 
C)  Less raw materials need to be imported. 
D)  All of the above 
E)  None of the above 
A)  MNC imports will bring in foreign exchange earnings. 
B)  FDI brings in capital. 
C)  Less raw materials need to be imported. 
D)  All of the above 
E)  None of the above

Question 9

Economists use the term 'globalisation' to mean that

Accepted Answer

A)  countries are more vulnerable to changes in the rest of the world. 
B)  trade is growing faster than GDP. 
C)  former communist countries have become capitalist. 
D)  A and C 
E)  A and B 
A)  countries are more vulnerable to changes in the rest of the world. 
B)  trade is growing faster than GDP. 
C)  former communist countries have become capitalist. 
D)  A and C 
E)  A and B

Question 10

Net FDI tends to flow into

Accepted Answer

A)  poorer countries. 
B)  rich countries. 
C)  African countries. 
D)  all countries equally. 
A)  poorer countries. 
B)  rich countries. 
C)  African countries. 
D)  all countries equally.

Question 11

Since 2009, FDI inflows to developing countries have risen.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is not likely to be a gain to a host state of a multinational company?

Accepted Answer

A)  Employment gains 
B)  Increased certainty over future economic activity 
C)  Improvement in the balance of payments 
D)  Technology transfer 
A)  Employment gains 
B)  Increased certainty over future economic activity 
C)  Improvement in the balance of payments 
D)  Technology transfer

Question 13

MNCs cover the entire spectrum of business activity, from manufacturing to extraction, agricultural production, chemicals, processing, service provision and finance.

Accepted Answer

A) True 
 B)False

Question 14

The percentage of FDI going to developing countries increased to approximately________ by 2010.

Accepted Answer

A)  40% 
B)  30% 
C)  20% 
D)  50% 
A)  40% 
B)  30% 
C)  20% 
D)  50%

Exam 23: Globalisation and Multinational Business

Adopting a policy to encourage FDI may be a method for a country to quickly improve its technological base.

What are the key characteristics you would expect to see at each stage of the product life cycle?

Which of the following is not a market driver of globalisation?

The whole of Africa received only 3% of world FDI in 2013.

Accessing global markets can

The location of MNCs depends entirely on factor prices.

All of the following are government drivers of globalisation, except for

Which of the following helps to explain how FDI can help to alleviate the foreign exchange gap?

Economists use the term 'globalisation' to mean that

Net FDI tends to flow into

Since 2009, FDI inflows to developing countries have risen.

Which of the following is not likely to be a gain to a host state of a multinational company?

MNCs cover the entire spectrum of business activity, from manufacturing to extraction, agricultural production, chemicals, processing, service provision and finance.

The percentage of FDI going to developing countries increased to approximately________ by 2010.

The Business Environment and Business Economics

Economics and the World of Business

Business Organisations

The Working of Competitive Markets

Business in a Market Environment

Demand and the Consumer

Demand and the Firm

Products, Marketing and Advertising

Costs of Production

Revenue and Profit

Profit Maximisation Under Perfect Competition and Monopoly

Profit Maximisation Under Imperfect Competition

An Introduction to Business Strategy

Alternative Theories of the Firm

Growth Strategy

The Small-Firm Sector

Pricing Strategy

Labour Markets, Wages and Industrial Relations

Investment and the Employment of Capital

Reasons for Government Intervention in the Market

Government and the Firm

Government and the Market

International Trade

Trading Blocs

The Macroeconomic Environment of Business

The Balance of Payments and Exchange Rates

Banking, Money and Interest Rates

Business Activity, Employment and Inflation

Demand-Side Policy

Supply-Side Policy

International Economic Policy

Filters