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CAIE IGCSE Economics 6.2.3 Role of Multinational Companies Mncs Questions

Practise Cambridge IGCSE Economics by defining multinational companies and evaluating their jobs, investment, technology, tax, poverty and environmental effects.

Syllabus
2027–2029
Course
Economics 0455

Exam points

  • Define a multinational company (MNC) and distinguish its home-country and host-country operations.
  • Analyse benefits and costs of MNC activity for host and home countries, including jobs, investment, technology, tax revenue, profits and environmental effects.
  • Evaluate whether an MNC should enter or remain in a host country, using poverty, development and business-context evidence.

CAIE IGCSE Economics 6.2.3 Role of Multinational Companies Mncs Questions question 1

[Maximum number: 2]

A Swiss multinational food manufacturer increased prices for its products by an average of 8% in 2022. It increased its prices in the USA by 11.6%. This multinational company (MNC) is one of the world's oldest MNCs. It started as a small firm but has grown over the last 160 years. Over this period, its decisions have always been influenced by opportunity cost.

Define multinational company.

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