Final answer:
The false statement about communication technology's impact on multinational companies is that it limits production. In fact, it enables companies to expand production, manage global operations, and support the creation of a borderless financial market.
Step-by-step explanation:
The development of communication technologies has drastically impacted multinational companies in several ways. Among the possible impacts listed, the false statement is: "It limits the amount of a product that a company can make." This assertion does not align with the reality of advancements in these technologies.
On the contrary, the proliferation of new communication technologies has enabled firms to scale operations, manage complex supply chains, and enhance communication, effectively allowing them to increase production. For instance, it allows multinationals to communicate with subsidiaries and partners across the globe, which supports larger and more diverse production efforts. Globalization has been fueled by these technologies, allowing companies to position elements of the value chain in other countries, often where costs are lower, more easily than before. This strategic move not only augments their production capabilities but also improves efficiency and competitiveness.
Moreover, the influence of communication technologies has played a pivotal role in the creation of a borderless financial market. The seamless flow of financial information and transactions across the world has become the norm, largely due to improvements in telecommunication infrastructures. Therefore, the statement about limiting production is fundamentally inaccurate when analyzing the effects of communication technologies on multinational corporations.