Question

In what ways is an MNC different from other companies?

Answer 1

1. An MNC is a company that owns or controls production in more than one nation.

2. Other company owns and controls production in only one country. 

3. MNCs set up offices and factories where they get cheap labour. 

4. They try to earn more profits. 

5. The production process of MNCs is divided into small parts and spread across the globe. 

6. Other companies tend to produce at a single place. 

7. MNCs are rich and sound in technology. 

8. Other companies may not be rich that much and may not possess such sound technology.

Answer 2

1. An MNC owns and operates production across various countries of the world while other companies do not.

2. Foreign trade and foreign investment are essential features of an MNC while they are not the case of other companies.

3. MCs are usually large companies in terms of cost and production while other companies may not be such.

4. MNCs are responsible for the globalisation of the economy while other companies are not.