Question

All of the following are often mandated by host governments, EXEPT a. MNCs must hire a certain percentage of local nationals b. MNCs must train native workers c. MNCs must repatriate earnings back to the home country d. MNCs must develop the local infrastructure

2. In order to circumvent the non-convertibility of currency, an MNC can a. Use barter rather than currency b. Trade currency on the black market c. Both a and b d. None of the above

3. Which of the following types of transactions allows traders to hedge against the risk of future exchange rate changes? a. Spot transactions b. Barter c. Countertrade d. Futures

4. Which of the following does NOT affect the ad valorem tax placed on imported goods? a. The value of the goods b. The country of origin of the goods c. The culture of the importing country d. The classification of the goods

Answer 1

Question 1

Multi national corporations are courted by different countries to establish their operations in the country.

This is because MNCs are considered to be a vehicle for inflow of funds and technology into a country thereby contributing towards fast growth of the country.

However, countries also put some restrictions on the MNCs to safegurad the domestic interest.

This restrictions include regulations regarding purchase of certain percentage of local goods in the manufacturing process by MNCs, hiring and training of loacl nationals or native workers, technological transfers, and investment of certain portion of profit back in to the infrastructure and development of the host country.

So,

The host country would never mandate that MNCs must repatriate earning back to the home country.

Hence, the correct answer is the option (c).