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CIMA Exam CIMAPRA17-BA1-1 Topic 2 Question 100 Discussion

Actual exam question for CIMA's CIMAPRA17-BA1-1 exam

Question #: 100
Topic #: 2

[All CIMAPRA17-BA1-1 Questions]

Which TWO of the following are positive impacts for a national economy which hosts a multinational company's (MNC) production facilities within their country"?

AMobile MNCs mean that operations can easily be transferred from one economy to another.

BMNCs provide employment opportunities in other countries for skilled workers from the host country.

CLocal producers can copy superior processes from the MNC which raises productivity within the recipient economy.

DDirect financial investment should improve economic welfare as capital is transferred to economies where the marginal rate of return on capital is highest

EMNCs can use transfer pricing to ensure taxes are minimised within a recipient economy.

Show Suggested Answer

Suggested Answer: C

by Shonda at Sep 14, 2024, 08:50 PM

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Gianna

2 days ago

Haha, E is definitely not a positive impact! Looks like they're trying to slip in a trick answer there. I'm going with B and D.

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Lashawn

14 days ago

Wow, this question is tricky! I'm not sure if A and E are really positive impacts for the host country. Maybe B and D are better options, but I'll have to think about this one.

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Hester

20 days ago

I'm not so sure about D. I think B and C are also important for the economy as they create more job opportunities and improve productivity.

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Sharen

21 days ago

I agree with you, Cecil. A and D can definitely benefit the economy by increasing capital flow and flexibility.

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Cecil

25 days ago

I think A and D are positive impacts for the national economy.

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