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Question

Which of the following is not the disadvantage of MNC?

A
Strain on foreign exchange reserve of the host country.
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B
More employment opportunities.
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C
Creation of monopolies.
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D
May kill domestic industry.
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Solution

The correct option is B More employment opportunities.
A multinational company is one which has its main office in the home country and has many branches or subsidiaries in two or more country. As MNC operates in more than two or more countries it encourages employment opportunities in different countries. Hence, it is not the disadvantage of MNC.

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