Choose the correct statement as True/False:

MNC is selling its finished goods globally and producing goods and services globally.

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True

False

answer is A.

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Detailed Solution

It is true that “MNC is not only selling its finished goods globally, but goods and services are also produced globally.” A Multinational Corporation (MNC) is a company, organisation, or business that controls or owns production in more than one country. Such companies produce their goods and services in those nations that provide them with a suitable environment for production. They set up their offices and factories in those regions where they can avail of abundant labour and other factors of production at cheap rates. In this manner, MNCs aim to reduce production costs by exploring different regions, thereby ensuring greater profitability and efficiency. That is why many multinational corporations prefer to invest in India, which has an abundant supply of cheap and hard-working labour.

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