Case Interview Prep

Category - Economics

The expansion of Multinational Companies (MNCs) such as Wal-Mart in the global market has occurred for the following reasons EXCEPT:
  1. secure, unchanging interest rates
  2. low cost access to local markets
  3. economies of scale
  4. international difference in productivity
Explanation
Answer: A - The expansion of Multinational Companies (MNCs) such as Wal-Mart in the global market has not occurred due to secure, unchanging interest rates.

Key Takeaway: MNCs represent the globalization of trade and an expansion into large international markets. MNCs have developed to provide low cost access to local markets and to develop economies of scale. Additionally, due to international differences in productivity based on education, training and infrastructure has led to the expansion of these companies the world over.
Was this helpful? Upvote!
Login to contribute your own answer or details

Top questions

Related questions

Most popular on PracticeQuiz