Final answer:
The geopolitical tension between the USA and China affects MNCs' activities through trade restrictions, regulatory scrutiny, and consumer sentiment.
Step-by-step explanation:
The geopolitical tension between the USA and China has a significant impact on the activities of multinational corporations (MNCs) operating in both countries.
Firstly, the tension can affect trade relations and impose trade restrictions, tariffs, or embargoes on specific industries or products, which can disrupt MNCs' supply chains and affect their ability to conduct business.
Secondly, political disputes can lead to increased regulatory scrutiny and stricter compliance requirements for MNCs, making it more challenging for them to operate smoothly in both countries.
Lastly, the tension can also affect consumer sentiment and nationalism, which may lead to boycotts or reduced demand for products of certain MNCs, impacting their sales and profitability.