Chapter 20, Problem 7AA

To determine

Correct word to complete the sentence.

Explanation of Solution

Manipulate

Multinational companies are those companies that do business or have offices and factories in many countries. Giant multinational companies enter a market and then form a joint venture with regional companies to gain economic dominance. Once they gain unique market power, they manipulate the government to take decisions according to their interest.

For instance, they may force the government to make policies that benefit their production and sale, etc. The government also fulfill its demand due to the fear of economic collapse. In case, the government does not fulfill their demand they may shift their business to another country, and it can negatively impact the country by reducing employment and production. It also sends a negative message around the world about the business environment in the country.