Final answer:
The statement is false; a foreign subsidiary is part of a multinational corporation but is not itself a multinational. A multinational corporation controls production in multiple countries, with broad economic and social impact across borders.
Step-by-step explanation:
The statement about a foreign subsidiary being totally owned and controlled by an organization and being called a multinational is false. A foreign subsidiary totally owned and controlled by an organization can be part of a multinational corporation, but on its own, it is not necessarily a multinational. A multinational corporation (MNC) is a larger entity that controls the production of goods and services in multiple countries, often engaging in various forms of business without regard to national borders and collecting capital from a variety of nationalities. MNCs play a significant role in the global economy, influence wealth distribution, and have deep impacts on the sociopolitical landscapes of the countries where they operate.
For example, conglomerates like Ford Motor Company operate across borders and are involved in the manufacturing of different products globally. These corporations integrate into the GDP, circular flow, and business cycle of the countries where they do business, and they must navigate the laws, taxes, customs, and culture of each nation.