The characteristics of a Multi National Enterprise (MNE) include which of the following?

It owns its subsidiaries in other countries

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It may operates in another countries

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These are established due to difference in the rate of return on capital between the two countries

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Both A and B

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Solution

The correct option is D Both A and B
A multinational corporation (MNC) has facilities and other assets in at least one country other than its home country. Such companies have offices and/or factories in different countries and usually have a centralised head office where they coordinate global management.

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Q. I am registered in one country, but I operate in more than one country at a time. I am headquartered in one country and operate wholly- or partially-owned subsidiaries in other countries.

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One of the ways of establishing a wholly owned subsidiary is acquiring an established firm in the foreign country and using that firm to manufacture or promote its products. In March 2008, Tata Motors acquired Jaguar Land Rover, making it a wholly owned subsidiary of Tata.

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(a) Name the type of enterprise mentioned in above case.
(b) State where the headquarter of Sony is located.
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Q. Read the following statements:
i) "Working Capital is the amount of funds necessary to cover the cost of operating the enterprise."
ii) "Circulating capital means current assets of a company that are changed in the ordinary course of business from one form to another."

Name the type of business enterprise which operates in more than one country.

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