Question

Which of the following are common characteristics of multinational enterprises (MNEs)? Check all that apply. Operations in a source country and only one host country Research and development in host countries Multinational stocks and management Fostered transfer of technology Company headquarters that are distant from the country where production occurs Low ratio of foreign sales to total sales

Answer 1

I. Research and development in host countries.

II. Multinational stocks and management.

III. Fostered transfer of technology.

IV. Company headquarters that are distant from the country where production occurs.

Step-by-step explanation:

A multinational enterprise (MNE) can be defined as any business firm that engages in the production of goods and services in two or more countries.

Generally, a multinational enterprise (MNE) has subsidiaries in other countries and as such derives a high amount of revenue outside its home country by providing goods and services that meets the need of customers through the use of advanced technology.

For a multinational enterprise (MNE), they have a central corporate facility but their products are not coordinated because their respective foreign markets offer unique products and services.

Some examples of a multinational enterprise (MNE) are Amazon, BNP Paribas, Alcatel-Lucent, Apple, Chevron, Casio, Disney, etc.

Some common characteristics of multinational enterprises (MNEs) include the following;

I. They carry out research and development in host countries.

II. MNEs engage in the sales of multinational stocks and management.

III. They facilitate or foster the transfer of technology between countries.

IV. The company headquarters of MNEs are usually distant from the country where production occurs.