Question

List the benefit(s) that domestic companies receive on foreign investments?

• A. Domestic companies receive technical know-how.
• B. Domestic companies receive tax exemptions.
• C. Domestic companies receive huge capital.
• D. Domestic companies receive grants from the government.

Answer 1

Answer: (A), (C)

Domestic companies receive huge capital.

MNCs invest in domestic companies to reach out globally. They use resources available in the foreign countries to reduce their cost of production. In return, domestic companies receive huge capital, technical know-how, and employment opportunities.