Question

20. What is the main motive behind the investments of MNCS

(multinational corporations)?
The main motive is to increase their assets and earn profits.
The main motive is the welfare of the poor people.
The main motive of an MNCs is to offer financial support to the government of their
country
The main motive is to benefit foreign countries.

Answer 1

Option A is the correct answer

Step-by-step explanation:

Multinational Corporation (MNC) are large organization that have their head office in one country(home country) but likewise controls services and other assets in not less than one country other than its home country by setting up partnerships with local companies where they get cheap labor and other resources to reduce their cost of production and increase their profits.They helps create capital flows to developing economies which had a significant impact on their economy and leads to creation of new jobs.

Investments made by MNCs are termed as Foreign investment and the main motive behind the investments of MNCS (multinational corporations) in every country is to increase their assets and earn profits and this is done by repatriate profits back to their home country.