4.4.3 Controlling MNCs

• What is a Multinational Corporation (MNC)?

  A business in multiple countries
• Controlling MNCs is crucial for maintaining global stability
• Centralized control in MNCs leads to greater local adaptability.

  False
• Why is controlling MNCs vital for ensuring efficient operations?

  Resource allocation and cost savings
• Match the control method with its advantage:

  Centralized Control ↔️ Consistency

  Decentralized Control ↔️ Flexibility

  Hybrid Control ↔️ Balances consistency and flexibility
• Regulatory frameworks for MNCs include local laws, international laws, and industry-specific regulations
• What does compliance refer to in the context of MNCs?

  Following regulatory requirements
• Transparency in MNCs involves openly sharing information with stakeholders.
• Order the types of international trade agreements from simplest to most complex:

  1️⃣ Bilateral Agreements

  2️⃣ Regional Agreements

  3️⃣ Multilateral Agreements
• How do international trade agreements benefit MNCs?

  Expand market access and reduce costs
• Regulatory frameworks govern the operations of Multinational Corporations (MNCs) to ensure compliance and stability
• Match the regulatory framework with its key focus:

  Local Laws ↔️ Labor standards, taxation, environmental protection

  International Laws ↔️ Trade agreements, human rights, intellectual property

  Industry-Specific Regulations ↔️ Practices in finance, healthcare, telecommunications
• Compliance involves adhering to regulatory requirements and company policies.
• Compliance is crucial for building trust and maintaining a positive reputation
• Match the compliance measure with the transparency measure:

  Regular audits ↔️ Annual reports

  Employee training programs ↔️ Stakeholder meetings

  Ethical codes of conduct ↔️ Public disclosures
• What is an example of a compliance measure that a company might use?

  Quarterly audits
• International trade agreements reduce trade barriers and promote trade relationships between countries.
• A bilateral trade agreement involves only two countries.
• Order the key ethical standards for MNCs:

  1️⃣ Fair Labor Practices

  2️⃣ Environmental Sustainability

  3️⃣ Community Involvement

  4️⃣ Ethical Sourcing
• Unilever demonstrates ethical standards by investing in sustainable agriculture and providing fair wages to farmers.
• Corporate Social Responsibility (CSR) initiatives enhance reputation and foster community goodwill
• Match the CSR initiative with its example:

  Environmental Conservation ↔️ Investing in renewable energy

  Community Development ↔️ Donating to schools and hospitals

  Employee Welfare ↔️ Providing health benefits and career training
• Which company invests in coffee bean farmer communities to ensure fair prices and sustainable farming practices?

  Starbucks
• Monitoring involves continuous tracking of key performance indicators
• What is an example of a company that uses monitoring to track inventory levels?

  Walmart