In what ways Multi National Corporation (MNC) different from other companies? Explain with an example.
Answer:
Explanation
- Multi-National companie s operate in multiple countries .
- MNCs expand globally to gain access to new markets.
- Multinationals are susceptible to currency rates .
Answer to be written in Exam
- Domestic firms ofte n limit their operations to their home country, whereas Multi-National companie s operate in multiple countries . Ex- Infosys, Microsoft.
- MNCs expand globally for various reasons such as to gain access to new markets, lower resource costs, and lower operational costs. These have a significant impact on financial management.
- Multinationals, in contrast to their domestic financial management competitors, are susceptible to currency rates that vary depending on the level of inflation in the foreign countries where they operate.
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