Describe Some of the Motivations Behind the Expansion of MNCs

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The Answer is Why firms internationalize by establishing branch plants or subsidiaries abroad, instead of by trade, is one of the most important questions in the study of multinational corporations. A second and related question is what effect this internationalization has on the politics, economy, and society of the host country. As in most areas of the social sciences, the answers to these questions vary according to the theoretical and ideological frameworks used to analyze them. At the risk of some simplification, we can point to three main approaches to understanding the internationalization of the multinational corporation: a critical approach inspired by Marxism; the mercantile or nationalist approach; and the liberal or international business approach. Each approach reveals different facets of the MNC and its activities.

Describe Some of the Motivations Behind the Expansion of MNCs

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Describe Some of the Motivations Behind the Expansion of MNCs

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Correct Answer:
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