CIMA Exam CIMAPRA17-BA1-1 Topic 2 Question 100 Discussion

Actual exam question for CIMA's CIMAPRA17-BA1-1 exam

Question #: 100
Topic #: 2

Which TWO of the following are positive impacts for a national economy which hosts a multinational company's (MNC) production facilities within their country"?

AMobile MNCs mean that operations can easily be transferred from one economy to another.

BMNCs provide employment opportunities in other countries for skilled workers from the host country.

CLocal producers can copy superior processes from the MNC which raises productivity within the recipient economy.

DDirect financial investment should improve economic welfare as capital is transferred to economies where the marginal rate of return on capital is highest

EMNCs can use transfer pricing to ensure taxes are minimised within a recipient economy.

Show Suggested Answer

Suggested Answer: C

by Shonda at Sep 14, 2024, 08:50 PM

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Sanjuana

3 months ago

Ah, the age-old question: 'How can we attract multinational companies to our country and still keep our wallets full?' Looks like the answer is 'Beg them to pay their fair share of taxes.' Good luck, folks!

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Goldie

3 months ago

This exam is really putting my economic knowledge to the test! I'm going to go with B and D, since they seem like the most legitimate positive impacts. Although, I do wonder if the tax-minimizing MNCs are going to throw me for a loop...

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Joseph

2 months ago

Yeah, those two options definitely stand out as positive impacts that can benefit the host country's economy in the long run.

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Timothy

2 months ago

Yeah, those two options seem like they would have the most positive impact on the economy hosting the MNCs.

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Oren

2 months ago

I think the employment opportunities and direct financial investment are key factors in boosting the economy.

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Bea

2 months ago

I think MNCs providing employment opportunities and direct financial investment are definitely beneficial.

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Ressie

2 months ago

I agree, B and D do seem like the most positive impacts for the national economy.

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Leslie

3 months ago

I agree, B and D do seem like the most beneficial impacts for a national economy hosting a multinational company.

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Deandrea

4 months ago

Hmm, I'm not sure if MNCs really 'provide employment opportunities' for skilled workers from the host country. Sounds a bit too good to be true. But D seems like a solid choice.

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Roosevelt

2 months ago

D) Direct financial investment should improve economic welfare as capital is transferred to economies where the marginal rate of return on capital is highest

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Judy

2 months ago

B) MNCs provide employment opportunities in other countries for skilled workers from the host country.

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Tuyet

3 months ago

A) Mobile MNCs mean that operations can easily be transferred from one economy to another.

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Gianna

4 months ago

Haha, E is definitely not a positive impact! Looks like they're trying to slip in a trick answer there. I'm going with B and D.

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Gearldine

2 months ago

Agreed, those two options would definitely benefit the host country's economy.

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Lindsay

2 months ago

MNCs providing employment opportunities and direct financial investment are definitely positive impacts.

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Graciela

3 months ago

I think B and D are the most beneficial for the national economy.

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Aliza

3 months ago

I agree, E does seem like a sneaky answer.

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Lashawn

4 months ago

Wow, this question is tricky! I'm not sure if A and E are really positive impacts for the host country. Maybe B and D are better options, but I'll have to think about this one.

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