economicsMost major multinationals, such as Nike, Coca-Cola, Pepsi, Honda, and Nokia, are American, Japanese, or European. Can you guess why?

Most major multinationals, such as Nike, Coca-Cola, Pepsi, Honda, and Nokia, are American, Japanese, or European. Can you guess why?


  1. A
    Large organization
  2. B
    Technology
  3. C
    Multi-country operations
  4. D
    All of the above 

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    Solution:

    Most major multinationals, such as Nike, Coca-Cola, Pepsi, Honda, and Nokia, are American, Japanese, or European because of Large organisations, Technology, and Multi-country operations.
    MNCs are companies that set up their offices and industries in different countries across the globe. They enhance production with cheap labour and other resources to minimise costs and maximise profits. They sell their finished products across all countries and spread their production process globally. They have huge networks and industries that take a lot of investment and control a lot of capital, technology, and information. Their assets are diversified in many countries because of their huge network. It takes a lot of highly sophisticated and modernised technology for production. Thus, nearly all major multinationals are American, Japanese, or European, such as Nike, Coca-Cola, etc.   
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