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

22 days 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

24 days 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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Leslie

2 days 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 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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Tuyet

16 days ago

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

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Gianna

1 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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Graciela

2 days ago

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

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Aliza

26 days ago

I agree, E does seem like a sneaky answer.

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Lashawn

2 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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