To evaluate: The difference between a multinational and an affiliate.
Explanation of Solution
A multinational corporation (MNC) has infrastructure and other resources in one other nation than its place of origin. Usually, a multinational company has offices or warehouses in various countries, and a centralized corporate headquarters where global management is coordinated. These firms are also called to as international or multinational corporate organizations tend to have expenditures which surpass those of many small nations.
Affiliate is generally used to define a corporate
Introduction: In many cases of foreign direct investment, firms start creating host country subsidiaries and affiliates to avoid negative prejudice linked with foreign ownership or bad impression associated with buying with owning a controversial parent company.
Chapter 20 Solutions
Economics Today and Tomorrow, Student Edition
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