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Chapter 8: Multinational Corporations in the Global Economy Multiple Choice Questions 1.
Multinational corporations (MNCs) are a) not the primary drivers of and beneficiaries from globalization. b) the primary drivers of but not the beneficiaries from globalization. c) the primary drivers of and beneficiaries from globalization. d) the beneficiaries from globalization but not its primary drivers. e) a recent invention. Answer: c
2. Since 1969, the number of firms engaged in international production as increased a) from 5,300 to 90,000 in 2010. b) from 6,300 to 120,000 in 2010. c) from 7,300 to 150,000 in 2010. d) from 4,300 to 100,000 in 2010. e) from 7,300 to 100,000 in 2010. Answer: e 3. A national company becomes an MNC when it a) places multiple production facilities in multiple countries under the control of a single corporate structure. b) places multiple production facilities in multiple countries under the control of multiple corporate structures. c) uses foreign workers in multiple countries under the control of a single corporate structure. d) Pays taxes in multiple countries. e) places multiple production facilities in a single country under the control of multiple corporate structures. Answer: a
4. According to Oatley, the U.S.-based company is regularly ranked among the world’s largest MNCs. It controls some 250 plants located in 26 countries in North and South America, Europe, and Asia. a) Microsoft b) AT&T c) Exxon-Mobil d) Ford
