Question

Why do MNCs invest in foreign countries?

• A. To establish subsidiaries
• B. To collaborate with companies in the host country
• C. To provide jobs to people in the host country
• D. To acquire assets

Answer 1

Answer: (A), (B), (D)

To acquire assets

Generally, MNCs invest in foreign countries to establish a subsidiary, to collaborate, or to acquire or buy a business. The main motive of such investments is to expand the business. Though they create jobs through their investment, job creation is not one of their main purposes.