Question
Multinational corporations (MNCs) play significant roles in shaping the global economy. For example, MNCs in the U.S., which has the world's largest economy, make disproportionate
Multinational corporations (MNCs) play significant roles in shaping the global economy. For example, MNCs in the U.S., which has the world's largest economy, make disproportionate contributions to the national economy: They represent a very small number of total American firms (less than 1%), but a large fraction of GDP, exports, imports, researchand development,and private-sector employee compensation; Specifically, U.S. MNC parent companies in 2016 constituted more than 24% of private sector GDP (value-added) and 26% of private-sector
employee compensation (Bureau of Economic Analysis, 2018). U.S. MNCs are engaged in more than half of all U.S. exports and more than 40% of U.S. imports (Bureau of Economic Analysis 2018b). Likewise, MNCs throughout the world dominate the global economy as well as their national economies. The OECD (2018) estimates that MNCs account for half of global exports, nearly a third of world GDP (28%), and about fourth of global employment. These firms all generate a significant share of their revenue from abroad as well. Despite theircontributions tothe economy, it has been established that the MNCs capital structure decisions is affected by various factors, discuss
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started