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Which of the following is NOT true about MNCs?

a. Worldwide employment by U.S. MNCs is much larger than that of foreign-owned MNCs.
b. The growing interdependency among nations and the activities of MNCs have become important facets of economic life.
c. Of the 30 largest MNCs in the world, 13 have their home offices located in the United States.
d. The annual sales revenue of large MNCs is greater than the entire economies of many nations in which they do business.
e. MNCs have relatively little economic influence in most of the countries in which they operate.

User Yiwei
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Final answer:

The false statement about MNCs is that a. worldwide employment by U.S. MNCs is much larger than that of foreign-owned MNCs.

Step-by-step explanation:

Among the statements provided, the one that is NOT true about Multinational Corporations (MNCs) is: Worldwide employment by U.S. MNCs is much larger than that of foreign-owned MNCs. This statement is incorrect; according to data, U.S. multinational enterprises employed 42.5 million workers worldwide in 2017, which is a substantial number but does not necessarily mean it is much larger than the employment by foreign-owned MNCs. Furthermore, the claim that a large share of their capital is collected from a variety of nationalities aligns with the concept of MNCs raising capital globally.

MNCs have become vital players in the global economy, often having assets that exceed the GDP of some smaller countries. This economic power enables them to influence local policies, suggesting that they indeed have significant economic influence in the countries where they operate, contradicting another provided statement. Also, with a considerable number of the largest MNCs headquartered in the U.S., it’s evident that not all of them are primarily based in the United States, directly challenging the validity of such a claim.

Thus, the accurate facts about MNCs are their substantial impact on the global economy, their influence over international and state policies, and the reality that they are headquartered in various countries, not just the U.S. These corporations possess vast resources and often utilize this advantage to exert influence on the countries where they operate.

User Regex Rookie
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