Economics Practice Quiz 56

Q1.Which country is specifically mentioned in the text as providing the advantage of being a cheap manufacturing location for MNCs?

A. India B. Mexico C. China D. Thailand

Q2.What specific advantage do Mexico and Eastern Europe offer to MNCs for setting up production?

A. Availability of highly skilled engineers. B. Proximity to markets in the US and Europe. C. Abundant cheap cotton fibre. D. Advanced technological infrastructure.

Q3.What specific advantages does India offer to MNCs for their production and service needs?

A. Cheap manufacturing location and advanced technology. B. Highly skilled engineers and educated English-speaking youth. C. Proximity to European markets and abundant raw materials. D. Low-cost unskilled labour and strong government policies.

Q4.What percentage of cost-savings can MNCs potentially achieve by spreading out production across borders, as indicated in the text?

A. 10-20 per cent B. 30-40 per cent C. 50-60 per cent D. 70-80 per cent

Q5.What are the two main benefits for a local company when setting up joint production with a Multinational Corporation (MNC)?

A. Access to new markets and reduced competition. B. Increased profits and government subsidies. C. Money for additional investments and latest technology. D. Cheaper raw materials and skilled labour.

Q6.Which of the following is NOT a general condition MNCs look for when setting up production?

A. Proximity to markets. B. Availability of skilled and unskilled labour at low costs. C. Assurance of availability of other factors of production. D. Strict environmental regulations and high taxes.

Q7.What is the term for the money spent to buy assets such as land, building, machines, and other equipment?

A. Revenue B. Profit C. Investment D. Expenditure

Q8.What is the specific term used for investment made by Multinational Corporations (MNCs)?

A. Domestic Investment B. Public Investment C. Foreign Investment D. Portfolio Investment

Q9.What is the primary hope or objective behind making any investment?

A. To generate employment opportunities. B. To earn profits from the assets. C. To comply with government regulations. D. To reduce operational costs.

Q10.What is the most common method adopted by Multinational Corporations (MNCs) for investments, as per the provided text?

A. Setting up new production units from scratch. B. Forming joint ventures with government entities. C. Buying up local companies and expanding production. D. Providing loans to small-scale industries.

Sign in with Email

Economics Practice Quiz 56