13
QuizMultiple Choice

Compelling Questions and Contemporary Issues — Test

Question 13 • Principles of American Democracy

What are the advantages of being a multinational corporation? Choose three correct answers.

Answer
A
expansion into new markets
B
lower tax payments
C
creation of a trade surplus
D
reliance on unskilled workers
E
access to cheaper labor

Explanation

A multinational corporation operates in more than one country, so it can expand into new markets and reach more customers. It may also lower tax payments by locating parts of its business where tax rates or rules are more favorable, and it can access cheaper labor in some countries. Creating a trade surplus is not a guaranteed advantage, and relying on unskilled workers is not inherently an advantage.

AI-written and checked against the verified answer.

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