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Transnational Corporations Quiz

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Questions and Answers

What defines a transnational corporation (TNC)?

Producing goods only in developed countries
Operating in multiple countries (correct)
Having a monopoly in one country
Being owned by a single country

Why do TNCs operate in multiple countries?

To increase trade tariffs
To avoid local taxes
To centralize production in one location
To access foreign markets (correct)

Which of the following is NOT a reason for TNCs to expand globally?

Finding lower production costs
Accessing foreign markets
Staying limited to one market (correct)
Escaping trade tariffs

Why does Nissan produce cars in Sunderland?

To access the EU market without tariffs (C) Signup and view all the answers

Which company is mentioned as originating in the US and expanding globally?

McDonald's (B) Signup and view all the answers

What is one of the main reasons for Transnational Corporations (TNCs) to operate in multiple countries?

To access foreign markets and resources (B) Signup and view all the answers

Which of the following companies is NOT listed as an example of a Transnational Corporation (TNC) in the text?

Toyota (C) Signup and view all the answers

What advantage does producing cars in Sunderland provide Nissan according to the text?

Access to EU market without tariffs (D) Signup and view all the answers

What role do trade tariffs play in the decision-making process of Transnational Corporations (TNCs) according to the text?

They prompt TNCs to expand globally to escape them (D) Signup and view all the answers

How can Transnational Corporations (TNCs) benefit from exploiting resources in foreign countries?

By gaining access to resources not available domestically (A) Signup and view all the answers