Because Multinational Corporations Operate Across National Boundaries and May Manufacture

question 5

Multiple Choice

Because multinational corporations operate across national boundaries and may manufacture their product in some countries, obtain raw materials in others, and run transportation and advertising networks around the globe, these corporations have helped:

• A) in redistribution of profits in the global economy.
• B) to maintain the international stratification system.
• C) to promote multiculturalism.
• D) all poor nations to get out of debt.
• E) increase cooperation in the global economy.

---

Definitions:

Interest

The cost of borrowing money, typically expressed as an annual percentage of the loan amount, or the income earned on deposited funds.

Simple Interest Rate

An interest rate calculation method that is based solely on the original principal amount and does not factor in compounded interest.

Loan

A sum of money that is borrowed, often from a financial institution, which is expected to be paid back with interest.

Interest

The payment required for obtaining the service of borrowing funds, typically denoted as a yearly percentage rate.