Chapter 20, Problem 17AA

To determine

To find: Those four countries that own half of the multinationals existing today.

Explanation of Solution

It was predicted in 1907s by economists that few multinationals will have almost 80% control over the production. About 60,000 multinational corporations with almost 620,000 branches were found to be working till 2006.

Half of these multinational companies are owned by few countries only. The four countries that own half of the multinationals today are the United States, Japan, Germany and Switzerland.

Economics Concept Introduction

Introduction:

Multinationals and foreign affiliates- Companies that have business and offices in other countries are called as multinationals. The branches of the multinational firms are in many countries and they are termed as foreign affiliates.