Economics: Globalisation and the Indian Economy · Class 10 · CBSE Social Science
What is the primary function of Multinational Corporations (MNCs)?
Practice question from Economics: Globalisation and the Indian Economy (Class 10 · CBSE Social Science), with the correct answer and a step-by-step solution.
easy · MCQ · Q-8CF80B
What is the primary function of Multinational Corporations (MNCs)?
- A.To control the government policies of developing nations
- B.To produce goods and services globally to minimize costs and maximize profitsCorrect answer
- C.To provide free financial aid to underdeveloped countries
- D.To completely eliminate local businesses in host countries
Solution
MNCs are enterprises that own or control production in more than one nation. They set up offices and factories for production in regions where costs of production are low so that they can earn greater profits.
More from Economics: Globalisation and the Indian Economy
- Which of the following is a major factor that has stimulated the globalisation process across the world?
- Explain how the 'liberalisation of foreign trade and foreign investment policy' acts as a catalyst for globalisation.
- What was the primary motive of the Indian government when it removed trade barriers around 1991?
- Which organisation monitors trade agreements and ensures that international trade rules are followed globally?
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