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Question
Justify the following statement.
MNC has mighty economic powers.
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Solution
- As MNC is operating on a global basis, they have huge physical and financial assets.
- In terms of assets and turnover, many MNCs are bigger than the national economies of several countries.
- Multinational corporations are powerful economic entities.
- Multinational corporations keep on adding to their economic power through constant mergers and acquisitions of companies in host countries.
- Thus, MNC has mighty economic powers.
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