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The MNC not only sell its finished products globally but, more importantly, the goods and services are produced globally. State whether true or false.

Question

The MNC not only sell its finished products globally but, more importantly, the goods and services are produced globally. State whether true or false.

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Solution

This statement is true.

Multinational corporations (MNCs) often operate on a global scale, and their business models involve not just selling finished products worldwide, but also producing goods and services in various locations around the globe. This is often done to take advantage of cost efficiencies, access to new markets, or local expertise. By establishing production facilities in different countries, MNCs can optimize their supply chains, reduce shipping costs, and respond more quickly to local customer demands. Furthermore, global production allows MNCs to benefit from diverse labor markets and potentially lower production costs, all of which contribute to their competitive advantage in the international marketplace.

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