The goal of a multinational corporation MNC is
A) The minimization of taxes remitted from foreign subsidiaries.
B) The establishment of subsidiaries in any country where operations would provide a return above the cost of capital, even if better projects are available domestically.
C) The maximization of shareholder wealth.
D) The maximization of social benefits to the host country through knowledge spillover effects.

Question

Quizplus · Accepted Answer

The goal of a multinational corporation is primarily the maximization of shareholder wealth. While MNCs may also bring social benefits to the host country, this is not the primary goal. The establishment of subsidiaries is also driven by the desire for returns above the cost of capital, but this is a means to the end goal of shareholder wealth maximization, rather than the goal itself. Tax minimization may be a secondary consideration for MNCs, but it is not the main goal.

The Goal of a Multinational Corporation MNC Is