Complete Question:
Four MNCs generate the same level of sales. The MNC that ______________________ would likely have the most direct foreign investment.
Group of answer choices
a. produces and sells its products locally
b. exports all of its products
c. acquires a foreign firm that produces most of its products to be sold in that foreign country
d. imports products from unrelated firms in other countries and sells them locally
Answer:
c. acquires a foreign firm that produces most of its products to be sold in that foreign country.
Explanation:
A multinational corporation (MNC) can be defined as any business that has productive activities in two or more countries.
This ultimately implies that, a multinational corporation (MNC) has a central corporate facility but their products are not coordinated because their respective foreign markets offer unique products and services.
If four MNCs generate the same level of sales. The MNC that acquires a foreign firm that produces most of its products to be sold in that foreign country would likely have the most direct foreign investment.
Generally, a multinational corporation (MNC) has subsidiaries in other countries and as such derives a high amount of revenue outside its home country by providing goods and services that meets the need of customers through the use of advanced technology.
Some examples of a multinational corporations (MNC) are Amazon, BNP Paribas, Alcatel-Lucent, Apple, Chevron, Casio, Disney, etc.
