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Question

What can be a disadvantage to the home country of the MNC's investing in other countries?

A
Transfer of capital from home country to host country.
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B
No employment to the people.
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C
Both a and b
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D
None of the above
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Solution

The correct option is D No employment to the people.
MNC refers to those organisations who have their headquarters in the home country and subsidiaries in two or more country. When a MNC invests in other countries it directly increases employment in the countries where investment is done. Hence, it can be a disadvantage to the home country as employment decreases..

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