Edexcel A-Level Business Theme 4.4 Global industries and multinationals overview quiz quiz

A firm that trades only in its home country and never operates abroad

A business that owns or controls operations in more than one country

A government agency set up to regulate trade between several countries

A small local business serving only the town or region in which it sits

Repatriation of profits back to the home country

Driving local firms out of the host country's market

Job creation, investment and technology transfer

Exploiting weak regulation to cut corners on safety

Reinvesting all profit locally in the host country where it was earned

Paying higher wages to local workers in the host country's operations

Donating a share of profit to charities based in the host country

Sending profits earned abroad back to the MNC's home country

Pay and working conditions in their supply chains

Choosing which company logo looks best on its products

The number of board meetings held during the year

The colour scheme used on the firm's product packaging

It bears no responsibility at all, because suppliers are separate firms that it does not own

Using suppliers with poor labour or environmental practices can cause scandal and reputational damage

Suppliers are always ethical, so there is never any need for the MNC to check on their conduct

Supply chains have no public impact at all, so whatever happens inside them stays completely hidden from view

Doing nothing at all and simply trusting every multinational to behave well

Removing all governments so that firms are left entirely free to do as they wish

Government regulation, pressure groups, social media exposure and self-regulation

Banning all international trade so that no multinational can operate across borders

MNCs are very small and so easily contained by national laws

Governments have unlimited power over any firm within their borders

MNCs never avoid tax at all, so there is nothing left for a government to police

MNCs are mobile, powerful and can relocate or minimise tax across borders

It rapidly exposes unethical behaviour, damaging reputation and forcing change

It cannot affect large MNCs in any way, since they simply ignore online criticism

It guarantees higher profits for MNCs by giving them free advertising to consumers

It replaces all government regulation, so no formal laws are needed to control firms

Avoiding all innovation so the firm never has to spend money on developing new products

Economies of scale, innovation, strong global brands and efficient supply chains

Ignoring foreign markets entirely and concentrating only on selling in the home country

Raising costs deliberately so the firm can charge much higher prices than its rivals do

It always raises prices, because firms face higher costs trading across borders

It removes all choice, leaving consumers with fewer products than they had before

It can lower prices and widen choice as firms compete globally

It has no effect at all on consumers, who see the same prices and products as before