Feb 212014

Multinational Companies (Corporations) are those enterprises whose management, ownership and control are spread in more than one country. They are very large industrial organizations which extend their industrial and marketing operations in several countries through their branches or subsidiaries.

We may define multinational companies as those enterprises which own control production or service facilities outside the country in which they are based. In other words, a multinational company is any firm (company) which performs its main operations like manufacture and provision of service in at least two countries.

Multinational companies set production units in several countries either under direct ownership and control of the original company or by incorporating separate companies in different countries. They are also called transactional corporations. The objective of these companies is to operate in a specialized field covering large number of products to be sold in various countries.

Multinational companies consist of the following elements: (a) Company should be operated in many countries (b) In the host country, research and production work should be conducted in order to increase the GDP of the country (c) Ownership must be multinational (d) Management should be in the hands of the parent company.

Some examples of famous multinational companies are Coca-Cola and Pepsi Companies of U.S.A., Sony Company of Japan, Nestlé Company of Switzerland, Honda, IBM Corporation of U.S.A., Mercedes Benz Company of Germany, Nepal Lever Limited, Asian Paints, Surya Tobacco Company of Nepal.

Multinational companies have the following characteristics:

  • Productive organization: It is a productive organization. This company produces various types of goods and services not only in their own country but also in many other countries. It uses its own technology, trademark and patent right for manufacturing goods.
  • Word-wide operation: It is the another characteristics of multinational company. The company extends its business world-wide by establishing branches or affiliating companies in various countries. Hence, its operation extends in more than one country.
  • Ownership and control: The ownership of multinational company remains both in parent and host country according to the investment. However, the parent company controls the management and its operation of the branches or affiliated companies. It control through capital investment, high technology, trademark, patent right etc.
  • Technology transfer: Multinational companies are established with a huge capital and advance technology. These companies transfer the advanced technology in the developing countries by establishing branches or affiliations. Its production system is based on mass production and the cost of production will not be higher. Developing countries can be benefited by transfer of the advanced technology.
  • Marketing superiorities: Multinational company is a large organization with international name and fame. It has a good network of distribution system and sells its products without any difficulties.
  • Higher efficiency: Multinational company is operated with higher efficiency due to advanced technology. It has greater capability for research and development work. It utilizes trained personal and mass production system. hence, it produces quality products with minimum cost of production.

Advantages and Disadvantages of Multinational Company

Multinational company has been helpful in transferring foreign investment and advanced technology from one country to another. The liberal trade and investment policy have facilitated multinational companies to invest in developing countries. The economic growth of the host country is feasible by the investment. The chief advantages of multinational company are as follows:

  • Industrialization: The economic development of a country depends upon the industrialization of a country. The developing countries have low level of saving and investment. Hence, multinational companies help in the industrialization process of a country. The untapped natural resources are tapped by them.
  • Quality and mass production: Multinational company is established with huge capital. It utilizes mass production system through advanced technology. It is operated in international standard. Hence, it obtains trained and qualified manpower and utilizes advanced technology by which qualitative products can be produced efficiently.
  • Lower cost of production: The lower cost of production is an important consequence of the mass production and marketing through multinational companies. The lower cost of production has benefited the developing countries.
  • Employment opportunities: Multinational company provides employment opportunities to the people of host countries in their production and marketing activities. Production enhances the purchasing capacities of the people and increase their standard of living. People are satisfied with new products of international standard. Employment in other countries is also increased by way of expanded markets in foreign countries.
  • Increase in government revenue: The multinational companies produce and sell products in large scale. Consequently, they can make more profits and pay excise duty, income tax, sales tax etc. which increases the revenue of the government.
  • Increase in export: Export of host country rises as per the multinational activities. It produces goods and services on the international standard. They are not produced only for local market but also are exported to other countries. So, it increases the export capacity.
  • Other benefits: The multinationals help private companies enter in the international markets by way of providing international market expertise, foreign exchange and financial management. The domestic businessmen and entrepreneurs get an opportunity to learn some new business skills from the. The high degree of marketability, competitive spirits, and fast action contribute maximum of profitability. The domestic shareholders are also benefited by the higher rate of dividend. The capital market of the host country is also improved by such activities and people at large are benefited.

Multinationals can damage the host country in various ways such as outflow of foreign exchange, economic exploitation, negative effects on local industries, social evils etc. The disadvantages of multinational company are given below:

  • Outflow of foreign exchange: In many cases, multinational companies use the local capital for their industrial development. They do not bring much capital from their countries. They earn huge amount of dividend. This requires sending dividend with royalties, managerial and technical fees etc. in the form of foreign exchange. By the foreign exchange, reserve is decreased in the country. A shortage of foreign exchange is greater problem to the developing countries.
  • Negative effects on local industries: Multinational companies have increased world competition. They enjoy international market, capital, technology and expertise. The competition from multinationals affect the local industries negatively. They can defeat any industries in the host country. Thus, the local industries and trade are adversely affected by them.
  • Economic exploitation: Multinational companies are mainly interested in making profits. Labor, raw materials and scarce foreign exchange are used for their self-benefits. Labor being cheap in developing countries are exploited to the maximum by them. The raw materials are purchased at cheaper rate. The producer of raw materials are purchased at cheaper rate. The producer of raw materials do not get adequate return. Thus, the cost of production is lower and charges higher prices on its product. Hence, multinationals earn maximum profits by unfair exploitation of the resources.
  • Exploitation of consumers: Multinational companies are monopolistic in nature and exploit the markets for their benefits. They use strong marketing and promotional techniques, product differentiation and other techniques to capture the market. They are in a position to increase prices and exploit the market. The consumers are suppressed with the higher prices. They exploit consumers at every front for their benefit.
  • Inequality in employment: Employment is not increased in host country as per anticipation. It provides only minimum employment to local people in practice. Usually multinational companies appoint top level personnel from their own country and local employment at the lower level only. Hence, multinationals create inequality in employment.
  • Social evil: Multinational companies produce goods mainly for rich markets for maximizing profits. The consumption patterns in developing countries are upset by luxurious production of multinationals. The gap between poor and rich increases, the latter purchases the product of multinationals, whereas the poor have no capacity to purchase them. The society experiences dissatisfaction and distortion. With heavy advertising expenditures, antisocial and vulgar advertisements are published for sales promotion by them for earning profits.

Feb 182014

SLC Model Question Set 5 Science

Full Marks: 75
Pass Marks: 30


1. a) What is meant by free fall? Does parachute fall freely? Write with reason. Write any two differences between acceleration due to gravity (g) and gravitational constant (G). [1+1.5+1.5=4]

b) Give three alternative sources of energy. What are the two conditions of nuclear fusion reaction found in the sun? Write any two natural phenomena from which geothermal energy can be obtained. [1.5+1+1=3.5]

2. a) Define pressure. Prove the relation of pressure exerted by an object with its surface area and the applied force. By which two properties of liquid is it used in hydraulic brakes? [1+2+1=4]

b) Study the given figure and answer the following questions. [1+1+1.5=3.5]

physicsi) What is the mass of stone in air?
ii) How much upthrust is exerted on the stone?
iii) Which principle is this experiment based on? Write the statement of the principle.

3. a) Define anomalous expansion of water. If water is cooled from 4oC to 0oC, what will be the change on its density? What amount of heat is required to raise the temperature of 20 kg of ice piece from -10oC to 70oC? (Specific heat capacity of ice is 21– J/kgoC and that of water is 4200 J/kgoC.) [1+1+2=4]

b) Write one function of ciliary muscle. What is meant by near point of eye? Draw a ray diagram showing how a compound microscope magnified the image of microorganism. [0.5+1+2=3.5]

4. a) Answer the following questions with the help of the diagrams. [1+1+1.5=3.5]

02i) Calculate the total resistance in each circuit.
ii) Find the amount of current flowing in each.
iii) If R1 and R2 are bulbs, in which circuit the bulbs are brighter? Why?

b) What do you mean by 60W written in electric bulb? Miniature circuit breaker (MCB) is used in an electric path, why? Calculate the cost of electricity when 5 electric bulbs each of 100W run for 8 hours a day and two electric heaters each of 1000W run for 2 hours a day. (Cost of 1 unit = Rs. 7) [1+1+2=4]


5. a) What is s-block element? Give an example of it. Why is potassium more reactive than calcium although both of them lie in the same period? Write two drawbacks of Mendeleev’s periodic table. [1+0.5+1.5+1=4]

b) Draw a neat and labelled diagram showing the laboratory preparation of carbondioxide gas. Is the given hydrocarbon saturated or unsaturated? Name the compound formed by the reaction of the above hydrocarbon with saturated hydrocarbon. Also, give its name. [2+0.5+0.5+0.5=3.5]


6. a) Gold is found in nature in pure state but not iron. Why? What is aquaregia? Write its reaction with gold in balanced equation form. [1+1+1.5=3.5]

b) What are the materials used in cement? Why lead crystal glass is called flute glass? Write any two reasons that plastics are useful. Mention two ways to control chemical pollution. [1+1+1+1=4]


7. a) Define reflex action. name the hormone secreted by male gonads. Mention one important function of this hormone. Answer the following questions based on the diagram:phototropism-experiment

i) Which process is shown in the diagram?
ii) What is to be done to let the plant grow towards the topmost face of the box? [1+0.5+1+0.5+1=4]

b) How does polio cause paralysis? Give any two preventive measures of AIDS. Give a difference between white blood cell and red blood cell on the basis of their functions. Name the compound which is formed by combination of haemoglobin and oxygen. [1+1+1+0.5=3.5]

8. a) How many chromosomes are there in human sperm and zygote? Why? Which type of cell division is indicated by the given diagram? Where does this type of cell division take place. Give its one importance. [2+0.5+0.5+1=4]cell division

b) What is binary fission? Life cycle of fern plant is divided into how many groups? What are they? Draw a neat and labelled diagram of mushroom. [1+1+1.5=3.5]

9. a) Write the scientific name of maize and classify it. In the given pyramid, biomass of an ecosystem is given, name the ecosystem. What relation between producer and consumer is shown in the given pyramid? Name a bacteria that helps in nitrogen fixation. [0.5+1+0.5+1.5+0.5=4]pyramid

b) Why did Mendel select pea plant in his experiment? Give two reasons. Draw a chart to show the result of offspring upto F2 generation when pure round seeded pea plants and wrinkle seeded pea plants are first cross-pollinated and then self-pollinated. Also write the phenotypic ratio of offsprings in F2 generation. [1+2+0.5=3.5]

Geology and Astronomy

10. a) How is it known that there were dinosaurs in the earth in ancient time? In which period were they dominant? What is artificial green house? Give its one use. [1+0.5+1+1=3.5]

b) What happens when hydrogen is finished in the core of the sun? Write two differences between galaxy and constellation. [2+2=4]