Choose the given statement is True/False

Multinational companies operate only by establishing a new branch in a new country.

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True

False

answer is B.

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Detailed Solution

The given statement is False.
A multinational company is a company that holds and operates businesses in more than one nation. There are many different ways through which a multinational company operates. A multinational company can operate by starting a new branch in a new company. It can also begin its business by partnering with an existing local company. This will help exchange advanced technology and production methods with the local firms. The multinational company can start its operations by acquiring an existing company, which allows it to earn through its sale.
The correct statement should be that there are many different ways through which a multinational company operates.

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