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Case Interview Prep

Category - Economics

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Multinational Companies (MNCs) that have opened establishments and stores in smaller regions in the United States have led to individual-owned companies to struggle for business. The advantages of MNCs include the following EXCEPT:
  1. greater R&D funding and capacity
  2. possession of better technology
  3. better access to local markets
  4. accumulated global managerial experience
Explanation
Answer: C - The advantages of MNCs do not include better access to local markets.

Key Takeaway: MNCs have proven themselves to be successful in penetrating markets in smaller regions in the United States. As a consequence, small, individual-owned companies struggled to compete against their establishments. Some of the advantages held by MNCs are greater R&D funding and capacity leading to improved products as well as the possession of better technology. As they operate in diverse markets, MNC management accumulate more effective managerial experience.
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