Question

Which of the following is/are advantage of MNC's?

• A. The activities of MNC's in the host countries may be harmful to the national interests as MNC's are solely guided by the profit maximization.
• B. MNC's restrict competition and acquire monopoly power in certain areas in the host countries.
• C. The activities of MNC's in the host countries not harmful to the national interests as MNC's are solely guided by the profit maximization.
• D. MNC's help the host countries to reduce the imports and promote the exports by raising domestic production.

Answer 1

The correct option is D MNC's help the host countries to reduce the imports and promote the exports by raising domestic production.

Advantages of multinational companies. Multinationals create jobs which boosts the local economy and more workers to tax. They bring expertise in that skills of workforce are improved, some may use IT that would never have before or other skills now deemed basic by the western or developing world.