Following are the features of a MNC. Identify which are correct.
(i) They are of giant sizes and their wealth is enormous.
(ii) They conduct international operations.
(iii) They have enormous influence on the government policies.
(iv) They operate in countries where the cost of production is cheap and markets of finished products are close by.

All are correct

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(i) and (ii) only

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(i), (ii) and (iii) only

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(i), (ii) and (iv) only.

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Solution

The correct option is A All are correct
An MNC is a company that owns or controls production in more than one nation. MNCs set up offices and factories for production in regions where they can get cheap labour and other resources. This is done so that the cost of production is low and the MNCs can earn greater profits.

Many of the top MNCs have wealth exceeding the entire budgets of the developing country governments. MNCs might look for government policies that look after their interests. MNCs set up production where skilled and unskilled labour is available at low costs.

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