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CAIE A-Level Economics 11.5.3 Multinational Companies

Practise defining MNCs and analysing how overseas production affects jobs, exports, technology, tax revenue, domestic competition and long-run development in host economies.

Syllabus
2026–2028
Course
Economics 9708
Level
A2

Exam points

  • distinguish an MNC operating in several countries from a firm that only trades internationally
  • analyse factory investment through employment, skills, technology, tax receipts and exports
  • evaluate host-country gains against low wages, profit outflows, market power and displaced firms

11.5.3—Multinational companies question 1

[Maximum number: 1]

Which statement describes a multinational company (MNC)?

A

A firm that avoids paying indirect taxes.

B

A firm that conducts operations in different countries.

C

A firm that experiences diseconomies of scale at low levels of output.

D

A firm that trades internationally.

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