Nearly all major multinationals are American, Japanese or European, such as Nike, Coca-Cola, Pepsi, Honda, Nokia. Can you guess why?
Major multinationals are American, Japanese or European because these are developed countries with enormous wealth and financial resources. Many top MNCs have wealth exceeding the entire budgets of developing country governments, giving them tremendous power and influence.
These developed countries have the necessary capital to establish large MNCs that can spread their production worldwide. The MNCs from these countries place orders for production with small producers across the world and sell products under their own brand names, controlling price, quality, delivery, and labour conditions globally.
Explanation
The textbook context explains that MNCs from developed countries (like America, Japan, and Europe) possess enormous wealth—often exceeding the budgets of developing nations. This financial strength enables them to establish global operations, control production across countries, and dominate markets. The context also notes that large MNCs in developed countries place orders with small producers worldwide, demonstrating their power to determine price, quality, and labour conditions. This explains why major MNCs originate from these economically powerful regions.