Final answer:
It is false to say that U.S.-based MNCs are not monitored by mutual funds and pension funds; these institutions often hold stocks in MNCs for diversification and financial returns.
Step-by-step explanation:
The statement that U.S.-based MNCs (Multinational Corporations) are typically not monitored by mutual funds and pension funds is false. Mutual funds and pension funds do, in fact, often hold stocks in MNCs. The interests of these institutional investors in MNCs are primarily due to the potential for diversification and financial returns that multinational operations can provide. Multinational corporations like Exxon Mobile, Amazon, Coca-Cola, Walmart, and Apple have significant portions of their stock held by various institutional investors, including mutual and pension funds.
MNCs are criticized for their profit-driven approach and for sometimes using their economic influence to impact politics and regulations in countries where they operate. They often seek to maximize profits, sometimes at the expense of social and environmental considerations. Yet, these corporations can have a significant impact on global employment and economic activity, as they are involved in direct foreign investments, which assumes managerial responsibility and contributes to the economy in various ways.