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Question (1)

QN0038171

Which of the following best describes a multinational corporation (MNC)?

(A) A company that produces goods only in its home country
(B) A company that owns or controls production in more than one nation
(C) A government-owned company operating within one state
(D) A company that only imports goods from other countries

Correct Answer: B

Explanation:

An MNC owns or controls production in more than one nation.

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Question (2)

QN0038172

Why do MNCs generally choose locations where labour and other resources are inexpensive?

(A) To increase government control
(B) To reduce production costs and earn greater profits
(C) To stop foreign trade
(D) To reduce consumer choice

Correct Answer: B

Explanation:

Lower production costs can help MNCs earn greater profits.

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Question (3)

QN0038173

An MNC invests ₹80 crore in production facilities in another country. This investment is classified as:

(A) Domestic investment
(B) Foreign investment
(C) Public expenditure
(D) Import expenditure

Correct Answer: B

Explanation:

Investment made by an MNC in another country is called foreign investment.

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Question (4)

QN0038174

An MNC invests ₹120 crore in machinery and ₹30 crore in other production assets in a foreign country. What is its total investment?

(A) ₹90 crore
(B) ₹120 crore
(C) ₹150 crore
(D) ₹180 crore

Correct Answer: C

Explanation:

Total investment = ₹120 crore + ₹30 crore = ₹150 crore.

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Question (5)

QN0038175

Why do MNCs spread production across different countries?

(A) To take advantage of differences in costs, skills, resources and markets
(B) To avoid all international trade
(C) To produce only luxury goods
(D) To eliminate competition completely

Correct Answer: A

Explanation:

MNCs spread production to take advantage of different locations and their resources, skills and markets.

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Question (6)

QN0038176

The price of a product falls from ₹500 to ₹300 after production becomes cheaper. What is the percentage reduction in price?

(A) 20%
(B) 30%
(C) 40%
(D) 60%

Correct Answer: C

Explanation:

Reduction = ₹200. Percentage reduction = 200/500 × 100 = 40%.

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Question (7)

QN0038177

Which arrangement between an MNC and a local company can provide the local company access to new technology and investment?

(A) Complete isolation
(B) Joint production
(C) Stopping production
(D) Banning imports

Correct Answer: B

Explanation:

Joint production can bring investment and technology to local firms.

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Question (8)

QN0038178

A local producer sells a product for ₹650, while an MNC offers a similar product for ₹400. By how much is the MNC's product cheaper?

(A) ₹150
(B) ₹200
(C) ₹250
(D) ₹300

Correct Answer: C

Explanation:

Difference = ₹650 − ₹400 = ₹250.

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Question (9)

QN0038179

How can an MNC influence small producers when it places orders with them?

(A) It always fixes higher wages
(B) It may influence price, quality, delivery and labour conditions
(C) It removes all production costs
(D) It guarantees permanent employment

Correct Answer: B

Explanation:

MNCs can determine or influence price, quality, delivery and labour conditions through orders.

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Question (10)

QN0038180

A country imports goods worth ₹900 crore and exports goods worth ₹700 crore. What is the difference between imports and exports?

(A) ₹100 crore
(B) ₹200 crore
(C) ₹300 crore
(D) ₹1,600 crore

Correct Answer: B

Explanation:

Difference = ₹900 crore − ₹700 crore = ₹200 crore.

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Question (1)

Which of the following best describes a multinational corporation (MNC)?

Explanation:

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Question (2)

Why do MNCs generally choose locations where labour and other resources are inexpensive?

Explanation:

Link:

Question (3)

An MNC invests ₹80 crore in production facilities in another country. This investment is classified as:

Explanation:

Link:

Question (4)

An MNC invests ₹120 crore in machinery and ₹30 crore in other production assets in a foreign country. What is its total investment?

Explanation:

Link:

Question (5)

Why do MNCs spread production across different countries?

Explanation:

Link:

Question (6)

The price of a product falls from ₹500 to ₹300 after production becomes cheaper. What is the percentage reduction in price?

Explanation:

Link:

Question (7)

Which arrangement between an MNC and a local company can provide the local company access to new technology and investment?

Explanation:

Link:

Question (8)

A local producer sells a product for ₹650, while an MNC offers a similar product for ₹400. By how much is the MNC's product cheaper?

Explanation:

Link:

Question (9)

How can an MNC influence small producers when it places orders with them?

Explanation:

Link:

Question (10)

A country imports goods worth ₹900 crore and exports goods worth ₹700 crore. What is the difference between imports and exports?

Explanation:

Link:

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