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Economics (AS & A Level) · Oct / Nov 2025 · Paper 31 · Question 26

9708Relationship between countries at different levels of development

Which statement describes a multinational company (MNC)?

  1. AA firm that avoids paying indirect taxes.
  2. BA firm that conducts operations in different countries.
  3. CA firm that experiences diseconomies of scale at low levels of output.
  4. DA firm that trades internationally.

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Correct answer: B. A firm that conducts operations in different countries.

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