Answer: The answers to the question are explained below.
Explanation:
A multinational corporation (MNC) is a big corporation integrated in one country where it manufactures or sell products in different countries.
One vital way a multinational firm can reduce the effect of future disaster in the global financial system is to be better prepared and well informed about the global capital market. This can be by using historical trends of the global financial system and also drawing on large amount of information about risks, markets, interest rates, exchange rates and creditworthiness. The information derived can be used by multinational corporations to make decisions on what to invest, how much to invest and where to invest.
Another way is by ensuring that the firm to invest in is profitable and won't be really affected by a recession. For example, during the period of the global financial crisis, higher education sector did well because people wanted to improve on their skills thus increasing university enrollments.
Lastly, there can be a diversification geographically with regard to the markets, plant locations, supply sources, etc. In case some economies are having stunted growth, other economies can make up for the sluggish economies. For example, during the financial crisis, the economies of China and India were not affected.
