Unit 10

Question 1

Commodities

Answer 1

Products that are bought and sold

Question 2

Example of commodities

Answer 2

Oil, gold, iron ore, rice, wheat and meat, etc

Question 3

Patents

Answer 3

Legal documents giving a person or company the right to make or sell a new invention, product, or method of doing something and stating that no other person or company is allowed to do this

Question 4

Ventures

Answer 4

New business activity that involves taking risks

Question 5

Currency reserves

Answer 5

Money in foreign currency held by a country and used to support its own currency and to pay for imports and foreign debts

Question 6

Human Capital

Answer 6

People and their skills

Question 7

Enterprise

Answer 7

the activity of starting and running businesses

Question 8

Exploitation

Answer 8

Situation in which you treat someone unfairly by asking them to do things for you, but give them very little in return

Question 9

repatriation (of profit)

Answer 9

where a multinational returns the profits from an overseas venture to the country where it is based, typically from a developing country to a developed country.

Question 10

Livelihood

Answer 10

way you earn money in order to live

Question 11

Benefits to a business of becoming a multinational

Answer 11

1. Larger Customer base
2. Lower Costs
3. Higher Profile
4. Avoiding Trade Barriers
5. Lower Taxes

Question 12

How have multinationals developed?

Answer 12

1. Economies of scales
2. Marketing
3. Technical and Financial Superiority

Question 13

Benefits of a multinationals to a country/economy

Answer 13

1. Increase in income and employment
2. Increase in Tax Revenue
3. Increase in Exports
4. Transfer of Technology
5. Improvement in the quality of human capital
6. Enterprise development

Question 14

Possible drawbacks of multinationals to a country/economy

Answer 14

1. Environmental Damage
2. Exploitation of Less Developed Countries
3. Repatriation of Profits
4. Lack of Accountability