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Transnational Corporations Quiz
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Transnational Corporations Quiz

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@GodGivenBouzouki

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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?

    <p>To access the EU market without tariffs</p> Signup and view all the answers

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

    <p>McDonald's</p> Signup and view all the answers

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

    <p>To access foreign markets and resources</p> 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?

    <p>Toyota</p> Signup and view all the answers

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

    <p>Access to EU market without tariffs</p> 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?

    <p>They prompt TNCs to expand globally to escape them</p> Signup and view all the answers

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

    <p>By gaining access to resources not available domestically</p> Signup and view all the answers

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