Question

Multinational corporations trade analysis differs from our conventional trade analysis because multinational corporation analyses ____________________.

• A. purely competitive markets rather than regular markets.
• B. the international movement of inputs as well as the movement of finished goods.
• C. absolute cost differentials rather than comparative cost differentials.
• D. none of the above

Answer 1

Answer: (B)

the international movement of inputs as well as the movement of finished goods.

MNC is an organisation which has its head office in the home country and subsidiaries in two or more countries. It helps to analyze the international movement of inputs as well as movement of finished goods. Hence, its trade analysis differs from our conventional trade analysis.