Question

when firms undertake fdi, they become mncs. they reduce their tax rate since they can tell each country that they do business in that they paid their taxes in other countries. the can exploit workers by paying them below-market wages in depreciating currencies. all of the above

Answer 1

Whilst corporations adopt fdi, they grow to be mncs.

The required details for Multinational Corporation in given paragraph

A multinational enterprise (MNC) is a corporation that has commercial enterprise operations in as a minimum one us of a apart from its domestic us of a. By a few definitions, it additionally generates as a minimum 25% of its sales out of doors of its domestic us of a. Generally, a multinational corporation has offices, factories, or different centers in distinct nations round the sector in addition to a centralized headquarters which coordinates worldwide management. A multinational enterprise is an corporation whose commercial enterprise sports arise in as a minimum nations. Some might also additionally do not forget any corporation with a overseas department to be a multinational enterprise.

Others might also additionally restrict the definition to best the ones corporations that derive as a minimum 1 / 4 in their sales out of doors in their domestic us of a.

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