MNC - Benefits to Businesses

Froggy Jumps

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Test your understanding!

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𝒫𝑒𝓃𝓃𝒾𝑒

Singapore

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Froggy Jumps MNC - Benefits to BusinessesOnline version Test your understanding! by 𝒫𝑒𝓃𝓃𝒾𝑒 1 Why might a company move production to another country? a To lower costs via cheaper labour, land, or materials b To avoid all taxes c To hire more staff locally 2 What is a key benefit of specialised production across countries? a Every country produces everything b Consistent production methods worldwide c Each country focuses on what it does best 3 How can avoiding barriers to trade help a firm? a By reducing tariffs b They must export more goods c By increasing government regulation 4 What is a benefit of operating in many countries? a Increased dependence on a single economy b Market share grows and risks spread c Risks stay the same 5 What advantage do MNCs gain from operating in countries with different resources? a Higher tariffs b Increased government control and regulations c C. Access to specialised labour and raw materials 6 What role do tariffs play in offshoring decisions? a Tariffs eliminate the need for international trade b Tariffs are ignored in policy c High tariffs can encourage firms to move production abroad to avoid them 7 Which scenario spreads business risk? a Sales are identical everywhere b Locating all production in one country c Sales fall in one country but not others 8 What is a direct effect of cheaper production factors? a Lower demand b Higher profits c Higher taxes 9 Why might a firm specialise by country? a To reduce product variety b To complicate logistics c To exploit local comparative advantages 10 Which strategy reduces transport costs specifically? a Produce goods closer to the market b Centralizing all production in the home country c Enhancing product quality

Froggy Jumps

MNC - Benefits to BusinessesOnline version

Test your understanding!

by 𝒫𝑒𝓃𝓃𝒾𝑒

Why might a company move production to another country?

To lower costs via cheaper labour, land, or materials

To avoid all taxes

To hire more staff locally

What is a key benefit of specialised production across countries?

Every country produces everything

Consistent production methods worldwide

Each country focuses on what it does best

How can avoiding barriers to trade help a firm?

By reducing tariffs

They must export more goods

By increasing government regulation

What is a benefit of operating in many countries?

Increased dependence on a single economy

Market share grows and risks spread

Risks stay the same

What advantage do MNCs gain from operating in countries with different resources?

Higher tariffs

Increased government control and regulations

C. Access to specialised labour and raw materials

What role do tariffs play in offshoring decisions?

Tariffs eliminate the need for international trade

Tariffs are ignored in policy

High tariffs can encourage firms to move production abroad to avoid them

Which scenario spreads business risk?

Sales are identical everywhere

Locating all production in one country

Sales fall in one country but not others

What is a direct effect of cheaper production factors?

Lower demand

Higher profits

Higher taxes

Why might a firm specialise by country?

To reduce product variety

To complicate logistics

To exploit local comparative advantages

Which strategy reduces transport costs specifically?

Produce goods closer to the market

Centralizing all production in the home country

Enhancing product quality

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MNC - Benefits to Businesses

Froggy Jumps

About this activity

Created by

Download the paper version to play

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MNC - Benefits to BusinessesOnline version

by 𝒫𝑒𝓃𝓃𝒾𝑒

Why might a company move production to another country?

What is a key benefit of specialised production across countries?

How can avoiding barriers to trade help a firm?

What is a benefit of operating in many countries?

What advantage do MNCs gain from operating in countries with different resources?

What role do tariffs play in offshoring decisions?

Which scenario spreads business risk?

What is a direct effect of cheaper production factors?

Why might a firm specialise by country?

Which strategy reduces transport costs specifically?

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