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Q.

Choose whether the given statement is true or false.

MNCs face many difficulties.

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a

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b

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answer is A.

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Detailed Solution

The above statement is true.
Multinational Corporations are big companies that spread their activities over many countries. Their production activities are not just limited to the home country. They face many difficulties, like tax competition, market imperfections, and political instability. Many countries charge high taxes from MNCs, and they resist investing in such countries. The market structure of every country is different. MNCs, find it hard to understand the market in a new country and compete with the existing local companies.

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Choose whether the given statement is true or false.MNCs face many difficulties.