Which of the following statement(s) is correct about MNCs?
1) A MNC is a company that owns or controls production in more than one nation.
2) They lead to creation of monopoly in the home country.
3) They are also called stateless organisations.
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. Only statements 1 and 3.
The correct statements about MNCs are:
A MNC is a company that owns or controls production in more than one nation. This is a defining characteristic of multinational corporations.
They are also called stateless organizations. MNCs operate across multiple countries and may not be closely tied to any single nation.
Statement 2 is not correct, as MNCs typically aim to increase market reach and competitiveness rather than creating monopolies in their home country.