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Q.

Which of the following is NOT the characteristic of an MNC?


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a

It has its office in one country but branches in many countries.

b

The cost of production of MNCs is high.

c

It can sell products all over the world.

d

MNCs increase competition. 

answer is B.

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Detailed Solution

MNC is an organisation that has offices and production units in two or more countries.
Some features of these MNCs are:
1)      These MNCs have a low cost of production, thus making option (2) wrong.
2)      The market of the products of these companies is huge as they have consumers all over the world.
3)      There is an increase in competition due to these companies.
4)      MNCs spend a lot on their research and development and thus, they have sophisticated technology.
 
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