Capital MNCs

Froggy Jumps

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test you knowledge

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ximena dahe

Mexico

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Capital MNCs


Froggy Jumps Capital MNCsOnline version test you knowledge by ximena dahe 1 What is the main difference between an exporting company and a multinational company? a A multinational company owns and controls productive operations in other countries, while an exporting company only sells its products in foreign markets. b A multinational company has higher revenues than an exporting company. c An exporting company only sells technological products. 2 According to Raymond Vernon's Product Life Cycle Theory, what usually happens when a product reaches the standardization stage? a Production returns to the country where the product was originally invented. b Production is moved to countries with lower manufacturing costs. c The product is no longer traded internationally. 3 Why might a company prefer to establish a subsidiary in another country instead of licensing its technology to a local firm? a Because licensing is always more expensive. b Because it wants to protect its technology, knowledge, or strategic processes. c Because licensing is prohibited in international trade. 4 What was the most important impact of the Industrial Revolution on the emergence of multinational companies? a The creation of international organizations. b The rise of the digital economy. c Improvements in transportation and communications, which facilitated the international expansion of businesses. 5 According to recent data, how does Mexico's average manufacturing wage compare to China's? a Mexico's wage is now roughly double China's b Mexico's wage is now similar to or lower than China's, reversing the old cost gap c The two countries have identical minimum wage laws 6 What is the main reason economists now argue trade policy (USMCA tariffs), not just wages, is the biggest driver of nearshoring to Mexico? a USMCA eliminates the need for any labor force in Mexico b The tariff gap between USMCA-compliant Mexican goods (0-4.5%) and Chinese goods (29.5%+) can be worth more than wage savings alone c Wages in Mexico are now higher than in the United States 7 Which pattern best describes the spatial distribution of FDI within Mexico discussed in this section? a FDI is spread evenly across all 32 states b FDI is distributed strictly according to population size c FDI concentrates heavily in Mexico City and northern/Bajío states, while southern states like Chiapas, Guerrero, and Oaxaca receive a negligible share 8 What does the Nuevo León water crisis case illustrate about the relationship between causes and effects in geoeconomic analysis? a Capital movement has no physical or environmental consequences b Nuevo León has unlimited water resources for industrial use c The same causes that attract capital (cost, location) can produce effects (infrastructure strain) that eventually constrain future growth 9 What does nearshoring aim to improve? a Supply chains b Tourism c Domestic taxes 10 What did foreign investment bring during the Porfiriato? a Less trade b Modernization c Nationalization 11 Why is Mexico attractive to MNCs? a Geography & labor b Distance c High tariffs 12 What was the main goal ISI? a Increase imports b Reduce industry c Promote domestic production

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Capital MNCs

Froggy Jumps

About this activity

Created by

Download the paper version to play

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Capital MNCsOnline version

by ximena dahe

What is the main difference between an exporting company and a multinational company?

According to Raymond Vernon's Product Life Cycle Theory, what usually happens when a product reaches the standardization stage?

Why might a company prefer to establish a subsidiary in another country instead of licensing its technology to a local firm?

What was the most important impact of the Industrial Revolution on the emergence of multinational companies?

According to recent data, how does Mexico's average manufacturing wage compare to China's?

What is the main reason economists now argue trade policy (USMCA tariffs), not just wages, is the biggest driver of nearshoring to Mexico?

Which pattern best describes the spatial distribution of FDI within Mexico discussed in this section?

What does the Nuevo León water crisis case illustrate about the relationship between causes and effects in geoeconomic analysis?

What does nearshoring aim to improve?

What did foreign investment bring during the Porfiriato?

Why is Mexico attractive to MNCs?

What was the main goal ISI?