Reading comprehension exercise
Read the given passage and answer the questions that follow.
Some of the best known brands in the world belong to multinational companies. Generally speaking, a multinational company is one that operates in more than one country. Some economists, however, believe that a company has to operate in at least six countries to be called a multinational company. Whether these companies have helped or harmed the countries where they operate is debatable. Particularly in the third world, they are supposed to create jobs, bring in investments and facilitate technology transfer. But more often than not, their net effect is the exploitation of human and natural resources. They pay minimum wages to their employees and earn huge profits.
1. The term ‘natural resources’ used in the passage refers to
a) Working force of a country
b) Technology developed in a country
c) Climatic conditions in a country
d) Raw materials available in a country
2. The poor countries do not gain from the presence of multinational companies because multinationals
a) do not create jobs
b) pay minimum wages and exploit natural resources
c) do not bring in new technology
d) make huge profits
3. According to the author, multinational companies
a) are a boon to the third world countries
b) become prosperous at the expense of poor countries
c) facilitate the economic growth of poor nations
d) bring technological innovations to poor countries
4. The author suggests that multinational companies
a) make huge profits
b) operate in at least six countries
c) exploit their employees in the third world
d) All of these
5. What does the term ‘technology transfer’ mean?
a) Introduction of new gadgets
b) Transfer of technical know-how
c) Creation of more jobs
d) Development of scientific knowledge
Answers
1. d) Raw materials available in a country
2. b) pay minimum wages and exploit natural resources
3. b) become prosperous at the expense of poor countries
4. d) All of these
5. b) Transfer of technical know-how
