11th Std Commerce EM 2nd Assignment Chapter 8 Multinational companies This is the second assignment answer key for 11th commerce full assignment for the month of July.
Chapter 8 Multinational companies
Part-A
I.One Mark Questions
1.Coca-Cola company is an example of …..
a) MNC
b) Government company
c) Joint Venture
d) Public company
Answer:- a) MNC
2.Enterprises operating in several countries but managed from one country
is termed as …….
a) Government company
b) Multinational Company
c) Private company
d) Joint Venture
Answer:- b) Multinational Company
3.Which of the following is not correctly matched?
Multinational companies – Subsidiary companies
a). Bata – Bata India
b). Sony corporation – Sony India
c). Suzuki – Maruti Suzuki
d). Colgate – TATA India
Answer:- d). Colgate – TATA India
4.Multinational corporation are stimulating ……….of the country
a) Competition
b) Growth
c) Employment
d) All of the above
Answer:- d) All of the above
5.“A multinational corporation owns and manages business in two or more
countries.”
a) Neil H.Jacoby
b) Hena
c) Peter F Drucker
d) Henry Fayol
Answer:- a) Neil H.Jacoby
6.A Multinational Corporation can be defined as a firm which
a) Is beyond the control of any government
b) Is one of the top 200 firms in the world
c) Owns companies in more than one country
d) All the above
Answer:- b) Is one of the top 200 firms in the world
7.Dispersal of decision making power to branches/affiliates/subsidiaries
by head office represents __
a) Centralisation
b) Decentralisation
c) Power
d) Integration
Answer:- b) Decentralisation
8.Which of the following is a non – Indian company
a) Bajaj
b) TVS
c) Sony
d) TATA
Answer:- c) Sony
9.Centralised control in MNC’s implies control exercised by
a) Branches
b) Subsidiaries
c) Headquarters
d) Parliament
Answer:- c) Headquarters
10.Assertation (A): the country’s currency payment through multinational
corporation reaches a growth stage
Reason (R): Multinational companies increase the export trade.
a). Both (A) and (R) are true and (R) is the correct explanation of (A)
b). Both (A) and (R) are true and (R) is the not correct explanation of (A)
c). (A) is true, but (R) is false
d). (A) is false, but (R) is true.
Answer:- a). Both (A) and (R) are true and (R) is the correct explanation of (A)
Part-B
II.Very Short Answer.
11.Define Multinational Company.
“A multinational corporation owns and manages the business in two or more countries.” – Neil H. Jacoby
12.Write any two advantages of MNC.
- End of Local Monopolies
- Quality product
13.Give two examples of MNC.
- Coca – Cola Corporation
- Unilever
14.Name the type of business enterprise which operates in more than one country.
Multi-National Corporation can be operated in more than one country.
15.What are the demerits of MNCs (Any two)
- Danger for domestic Industries
- Transfer of outdated technology
Part-C
III. Short Answer.
16.What are the advantages of MNC’s?
- End of Local Monopolies
- Quality product
17.State the meaning of MNCs
A multinational company is one which is incorporated in one country (called the home country) but whose operations extend beyond the home country and which carries on business in other countires (called the host countries) in addition to the home country
18.MNCS are losing jobs to indigenous peoples.
Desprivation of Job opportunity of local people MNCs may not generate job opportunities to the people of home country
19.MNCs rising the quality of life –Explain
By providing super quality products and service, MNCs help to improve the standard of living of people of host countries
20.Write a short note on – a) Technology development, b) Quality of products
a) Technology development,
MNCs carry the advantages of technical development in 10 host countries. In fact, MNCs are a vehicle for the transference of technical development from one country to another. Because of MNCs poor host countries also begin to develop technically
b) Quality of products
The resource, experience, and expertise of MNCs in the sphere of research and development enables the host country to establish its research and development system which helps it in producing quality goods and services at the least possible cost.
Part-D
IV.Write in detail.
21.What are the advantages of MNC’s?(any five)
1. Low-Cost Labour:
MNC set up their facilities in low-cost countries and produce goods/services at a lower cost. It gains a cost advantage and sells its products and services of good quality at low cost. This is not available to smaller companies which operate at the regional level.
2. Quality Products:
The resource, experience, and expertise of MNCs in the sphere of research and development enables the host country to establish its research and development system which helps it in producing quality goods and services at the least possible cost.
3. Proper Use of Idle Resources:
Because of their advanced technical knowledge, MNCs are in a position to properly utilise the idle physical and human resources of the host country. This results in an increase in the National Income of the host country.
4. Improvement in Balance of Payment Position MNCs help the host countries to increase their exports. As such, they help the host country to improve upon its Balance of Payment position.
5.Technical Development:
MNCs carry the advantages of technical development in 10 host countries. In fact, MNCs are a vehicle for the transference of technical development from one country to another. Because of MNCs poor host countries also begin to develop technically.
6. Managerial Development
MNCs employ the latest management techniques. People employed by MNCs do a lot of research in management. In a way, they help to professionalize management along the latest lines of management theory and practice. This leads to managerial development in host countries.
7. Promotion of international brotherhood and culture MNCs integrate economies of various nations with the world economy. Through their international dealings, MNCs promote international brotherhood and culture; and pave way for world peace and prosperity.
22.What are the dis advantages of MNC’s?(any five)
The danger for Domestic Industries
MNCs, because of their vast economic power, pose a danger to domestic industries; which are still in the process of development. Domestic industries cannot face challenges posed by MNCs. Many domestic industries have to wind up, as a result of threats from MNCs. Thus MNCs give a setback to the economic growth of host countries.
Transfer of Outdated Technology
Where MNCs transfer outdated technology to the host nation, it serves no purpose
No Benefit to Poor People
MNCs produce only those things, which are used by the rich. Therefore, poor people of host countries do not get, generally, any benefit, out of MNCs.
Danger to Independence
Initially MNCs help the Government of the host country, in a number of ways; and then gradually start interfering in the political affairs of the host country. There is, then, an implicit danger to the independence of the host country, in the long-run. Deprivation of Job Opportunity of Local People MNCs may not generate job opportunities for the people of their home country.
Misuse of Mighty Status
MNCs are powerful economic entities. They
Selfish Promotion of Alien Culture
MNCs tend to promote alien culture in the host country to sell their products. They make people forget about their own cultural heritage. In India, e.g. MNCs have created a taste for synthetic food, soft drinks, etc. This promotion of foreign culture by MNCs is injurious to the health of people also.
Neglect of Industrial and Economic Growth of Home Country
An investment in host countries is more profitable, MNCs may neglect home countries’ industrial and economic development.
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