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

Which TWO of the following are positive impacts for a national economy which hosts a multinational company's (MNC) production facilities within their country"?
C) Local producers can copy superior processes from the MNC which raises productivity within the recipient economy.
A) Mobile MNCs mean that operations can easily be transferred from one economy to another.
B) MNCs provide employment opportunities in other countries for skilled workers from the host country.
D) Direct financial investment should improve economic welfare as capital is transferred to economies where the marginal rate of return on capital is highest
E) MNCs can use transfer pricing to ensure taxes are minimised within a recipient economy.

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

Actual exam question for CIMA's CIMAPRA17-BA1-1 exam
Question #: 100
Topic #: 2
[All CIMAPRA17-BA1-1 Questions]

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

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Suggested Answer: C

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

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King
8 months ago
Wait, isn't transfer pricing just a way to dodge taxes?
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Lyda
8 months ago
Local producers definitely benefit from MNCs' tech!
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Adrianna
8 months ago
But what about the wages? Are they really that great?
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Josphine
8 months ago
Totally agree, that's a big plus!
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Mariko
9 months ago
MNCs create jobs in the host country.
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Emilio
9 months ago
I recall a practice question about MNCs, and I think option A is more about the risks than the benefits, so I’m leaning towards B and C for the positives.
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Arlette
9 months ago
I feel like option D makes sense because foreign investment usually helps the economy grow, but I’m not confident about the specifics.
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Kenny
9 months ago
I'm not entirely sure, but I think option C could be right too, since local firms often learn from MNCs and improve their processes.
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Johnna
9 months ago
I remember discussing how MNCs can boost local economies by creating jobs, so I think option B might be one of the correct answers.
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Dino
9 months ago
I feel pretty confident about this one. Based on my understanding, B and D seem like the two most clear-cut positive impacts for the national economy. I'll go with those.
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Beula
9 months ago
I'm a bit unsure about this one. There are a few options that seem plausible, but I want to make sure I select the two that are the most clear-cut positive impacts. I'll need to think this through.
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Elenor
9 months ago
Okay, let's see here. I think the key is to identify the positive impacts for the national economy that hosts the MNC's production facilities. A and E don't seem like positive impacts, so I'll focus on B, C, and D.
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Kristine
9 months ago
This question seems straightforward, but I want to make sure I understand the key points before answering. I'll read through the options carefully.
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Linn
10 months ago
Hmm, this is a tricky one. I think the key is to really understand what qualifies as a "positive impact" for the national economy. I'll need to weigh the pros and cons of each option carefully.
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Sanjuana
1 year 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
1 year 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
1 year 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
1 year 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
1 year ago
I think the employment opportunities and direct financial investment are key factors in boosting the economy.
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Bea
1 year ago
I think MNCs providing employment opportunities and direct financial investment are definitely beneficial.
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Ressie
1 year ago
I agree, B and D do seem like the most positive impacts for the national economy.
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Leslie
1 year 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
1 year 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
1 year 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
1 year ago
B) MNCs provide employment opportunities in other countries for skilled workers from the host country.
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Tuyet
1 year ago
A) Mobile MNCs mean that operations can easily be transferred from one economy to another.
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Gianna
1 year 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
1 year ago
Agreed, those two options would definitely benefit the host country's economy.
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Lindsay
1 year ago
MNCs providing employment opportunities and direct financial investment are definitely positive impacts.
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Graciela
1 year ago
I think B and D are the most beneficial for the national economy.
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Aliza
1 year ago
I agree, E does seem like a sneaky answer.
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Lashawn
1 year 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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Sherell
1 year ago
I agree, A and E might not be as positive for the host country. It's important to consider all the impacts.
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Verlene
1 year ago
I think B and D are the best options. They provide employment opportunities and improve economic welfare.
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Hester
1 year ago
I'm not so sure about D. I think B and C are also important for the economy as they create more job opportunities and improve productivity.
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Sharen
1 year ago
I agree with you, Cecil. A and D can definitely benefit the economy by increasing capital flow and flexibility.
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Cecil
1 year ago
I think A and D are positive impacts for the national economy.
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