Choose the correct statement as True/False:

MNCs are not able to cope with large demand for goods worldwide.

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True

False

answer is B.

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Detailed Solution

The Above Statement is False.
MNCs can cope with large demands all over the world and control prices.
1)      MNCs organise their production globally across various countries to maximise profit and quality.
2)      They strategically organise their production like china is a cheap manufacturer and demands are high in USA and Europe markets. Countries like India, Bangladesh and China get cheap labourers. These countries also provide cheap manufacturing locations.
3)      MNCs have control of the resources through which they have a huge influence in the economic and political spheres.
4)      Their international influence and huge wealth help them in controlling prices.
5)      Sometimes, MNCs join their companies with local companies from countries.
The correct statement would be that MNCs can cope with large demands all over the world and control prices

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