Question

MNCs have great impact on the development process of the Underdeveloped countries.

• A. False
• B. True
• C. Partly false
• D. None of above

Answer 1

The correct option is B True

Advantages of Multinational Corporations in Under developing countries-
Multinationals provide an inflow of capital into the developing country. E.g. the investment to build the factory is counted as a capital flow on the financial account of the balance of payments. This capital investment helps the economy develop and increase it's productive The inflows of capital help to finance a current account deficit. Multinational corporations provide employment.