Which of the following statements about multinational corporations (MNCs) is true?

A) MNCs operate on a global scale with strong ties to the nation in which they were founded.
B) MNCs are inherently unethical and always do harm in the countries in which they operate.
C) MNCs are characterized by a global strategy of focusing on opportunities throughout the world.
D) Most MNCs use licensing or franchising rather than opening up wholly owned subsidiaries in different countries.
E) Because of their power, MNCs usually increase the standard of living within the countries in which they operate.

Question

Taylor Forte · Accepted Answer

Final Answer : C, Explanation :  MNCs are characterized by a global strategy of focusing on opportunities throughout the world. While they may have ties to the nation in which they were founded, their operations and focus are on a global scale. Option B is incorrect as MNCs are not inherently unethical and may contribute positively to the countries in which they operate. Option D is incorrect as many MNCs do open wholly owned subsidiaries in different countries. Option E is also incorrect as the impact of MNCs on the standard of living in the countries in which they operate is highly debated and not conclusive.

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