Which of the Following Is NOT True About MNCs

question 24

Multiple Choice

Which of the following is NOT true about MNCs?

• A) The majority of the largest 100 economies in the world are MNCs rather than sovereign nations.
• B) Smaller countries can feel intimated by MNCs because of the enormity and economic power of large MNCs.
• C) The 1,000 largest MNCs account for 80 percent of the world's industrial production.
• D) The size (i.e., sales) of a large MNC is greater than the entire economies of many nations in which they do business.
• E) MNCs have relatively little economic influence in most of the countries in which they operate.

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Definitions:

International Trade

The exchange of goods and services between countries.

Trade Balance

The difference between the monetary value of a nation's exports and imports over a certain timeframe.

Free Markets

Economic systems in which the prices for goods and services are determined by the open market and consumers, in which the laws and forces of supply and demand are free from any intervention by a government, price-setting monopoly, or other authority.

Joseph Stiglitz

An American economist and professor known for his work on income distribution, risk, and information economics, and a recipient of the Nobel Memorial Prize in Economic Sciences.