Which factor contributes to the growing power of Multi-National Corporations?

The correct answer highlights a significant trend in the global economy. Increased foreign investment enables Multi-National Corporations (MNCs) to expand their operations, enter new markets, and enhance their competitive edge. When countries encourage foreign investment, MNCs can leverage local resources, talent, and consumer bases, leading to more substantial economic influence and power. This increase in investment also facilitates the transfer of technology and practices, further integrating MNCs into the fabric of local economies, which contributes to their growing global prominence.

In contrast, local government regulations, while they can create challenges for MNCs, often do not inhibit their overall power; instead, MNCs frequently adapt to and sometimes influence these regulations. Decreased international trade and a reduction in global demand represent factors that generally restrict corporate growth and influence because they limit the avenues through which MNCs can operate and expand. Hence, the increase in foreign investment is paramount in driving the growth and power of MNCs in today's interconnected world.