Cima C04 Exam Question No 18

Question No 18:

Multinational companies locate production in more than one country for all of the following reasons EXCEPT which ONE?

A. The existence of trade barriers.
B. High transport costs.
C. Capital is internationally immobile.
D. To increase market share.

Answer: B

Cima C04 Exam Question No 17

Question No 17:

The process of globalization leads to all of the following EXCEPT which ONE?

A. Increasing foreign competition in domestic markets.
B. Decreasing interdependence of national economies.
C. Greater international division of labor.
D. Rising levels of international trade relative to national income.

Answer: B

Cima C04 Exam Question No 16

Question No 16:

All of the following are features of globalization EXCEPT which ONE?

A. Rising trade ratios for countries.
B. Increased international capital flows.
C. Improved terms of trade for all countries.
D. Reduced barriers to international factor movements.

Answer: C

Cima C04 Exam Question No 15

Question No 15:

All of the following are characteristics of a common market EXCEPT which ONE?

A. Free trade in goods and services among member states.
B. Common levels of direct taxation.
C. Free movement of factors of production between member states.
D. A common external tariff.

Answer: B

Cima C04 Exam Question No 14

Question NO 14:

All of the following are reasons for trans-national companies locating production of a good in more than one country except one. Which ONE is the EXCEPTION?

A. The existence of trade barriers.
B. Significant transport costs.
C. Economies of scale in production.
D. Differences in demand conditions between countries.

Answer: C