CAIE A-Level Economics 11.5.3 Multinational Companies

CAIE A-Level Economics 11.5.3 Multinational Companies
Cambridge International AS & A Level Economics 9708 syllabus for exams in 2026, 2027 and 20282026–2028

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

How this is tested

  • 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

Question 26

[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.