MNCs can help the developing country to ?

Related Mcqs:

1. Some economists and third-world policy makers criticize MNCs arguing that they have a negative effect on the developing country because they ?

   I- increasing the LDC’s technological dependence on foreign sources resulting in less technological innovation by local workers
   II- Hamper local entrepreneurship and investment in infant industries
   III- increase unemployment rates from unsuitable technology
   IV- Restrict subsidiary exports when they undercut the market of the parent company

   A. I and II only
   B. III and IV only
   C. I, II and III only
   D. I, II, III and IV

2. To help developing nations strengthen their international competitiveness many industrial nations have granted non-reciprocal tariff reductions to developing nations under the ?

   A. international commodity agreements program
   B. multilateral contract program
   C. generalized system of preferences program
   D. export-led growth program

3. Assume that Country A is relatively abundant in labor and Country B is relatively abundant in land Note that wages are the returns to labor and rents are the returns to land According to the factor price equalization theorem, once Country A begins specializing according to comparative advantage and trading with Country B: A. wages and rents should fall in Country A B. wages and rents should rise in Country A C. wages should rise and rents should fall in Country A D. wages should fall and rents should raise in Country A ?

   XA. wages and rents should fall in Country A
   B. wages and rents should rise in Country A
   C. wages should rise and rents should fall in Country A
   D. wages should fall and rents should raise in Country A

4. Which of the following organizations primarily provides long-term loans to developing countries to help them develop their infrastructure such as schools hospitals and roads ?

   A. World Bank
   B. International Monetary Fund
   C. Council on Foreign Relations
   D. Organization of petroleum Exporting Countries

5. If two countries A and B are member of a currency union and there is a shift in consumer preferences away from the goods of country A and towards those of country B than which one of the following would help to offset the effect of the resulting changes in aggregate demand in A and B on inflation and unemployment in the tow countries ?

   A. A high degree of labour mobility between the tow countries
   B. An increase in government spending in country (A)
   C. A depreciation in the foreign exchange value of the common currency
   D. A low degree of capital mobility between the two countries

6. Most of developing-country exports consist of ?

   A. primary products such as tin and bauxite
   B. intermediate products
   C. labor-intensive agricultural products
   D. labor-intensive manufacturing products

7. U.S total official development assistance to developing countries is ?

   A. lowest among the OECD countries
   B. higher currently than it was in the 1960s and 1970s
   C. is equivalent to Holland’s aid
   D. None of the above statements is true

8. Which industrialization policy have developing countries used which places emphasis on the comparative advantage principle as a guide to resource allocation ?

   A. export promotion
   B. import promotion
   C. international commodity agreements
   D. multilateral contracts

9. The arrangement where goods imported from trading partners in the developing world are subject to lower tariff rates than goods from other countries is referred to as ?

   A. normal trade relation status
   B. most favored nation status
   C. offshore assembly provisions
   D. Generalized System of Preferences

10. In the Px = export price index, Pm = import price index, Qx = export quantity index,and Qm = import quantity index. Developing countries tend to maintain that their commodity term of trade have declined over the long run suggesting that _________ has declined?

    A. Px/Pm
    B. Pm/Px
    C. (Pm/Px)Qm
    D. (Px/Pm)Qx