Question

Which of these characteristics is NOT applicable to a multinational company?(A) It may serve only one country but have suppliers or facilities in other countries.(B) It provides goods or services to international consumers.(C) Its employees must speak multiple languages.(D) It may adapt its operations to fit the cultures of the countries in which it operates.(E) It must comply with the laws of the countries in which it operates.

Answer 1

Answer:

(A) It may serve only one country but have suppliers or facilities in other countries.

Explanation:

• An MNC is a multinational enterprise as its a corporate organization that serves the goods and services and also manages the production the establishments, and thus has a plants located in at least two countries and engages in FDI foreign direct investment as the firm markets have a direct investment in the host countries equity ownership and managerial control.

• They generally make a significant investment in a foreign country, also buying and selling licenses in the foreign markets and prover their global presence in a variety of ways like advertising costs over the global sales, pooling of global purchasing power over the suppliers, and also spreading R&D and innovation in markets.