What is the international business environment most conducive to the creation of wealth by MNCs?

Question

Quizplus · Accepted Answer

A stable international security environment is ideal for multinational corporations (MNCs) to create wealth. This allows for long-term investments without the threat of political instability, violence, or expropriation of assets. In a stable environment, MNCs can focus on business operations and strategic planning, leading to increased productivity and profitability.

Option A is incorrect as rapidly changing conditions can create uncertainty, making it difficult for MNCs to make long-term plans and investments.

Option B is incorrect as rival trading blocs can create barriers to entry and increase competition for MNCs, leading to reduced profitability.

Option D is incorrect as policies of mercantilism promote protectionist measures and can limit international trade, reducing opportunities for MNCs to expand their operations globally.

What Is the International Business Environment Most Conducive to the Creation