Choose whether the given statement is True/False:

MNCs not only sell their finished goods globally, but their goods and services are also produced globally.

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True

False

answer is A.

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Detailed Solution

The above statement is true.
Its production process is distributed among many countries around the globe. Let's understand this complex process through an example of a large MNCs producing goods. To begin with, the first step is to design the goods which happen in one country, let it be the United States, and then the equipment manufacturing takes place in another country like China. This equipment is shipped to another country for assembling, like Mexico or Eastern Europe, and after assembling, the finished products are sold all over the globe. The after-sale and customer care services are set up in a country mostly in India because of cheap labour and proficiency in the English language. This is how the production process takes place in MNCs.

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