Business Studies

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


Answer & Solution

All of the above


SOLUTION


  • Access to Consumers – Access to consumers is one of the primary advantages that the MNCs enjoy over companies with operations limited to the smaller region. Increasing accessibility to wider geographical regions allows the MNCs to have a larger pool of potential customers and help them in expanding, growing at a faster pace as compared to others.
  • Accesses to Labor – MNCs enjoy access to cheap labor, which is a great advantage over other companies. Taxes and Other Costs – Taxes are one of the areas where every MNC can take advantage. Many countries offer reduced taxes on exports and imports in order to increase their foreign exposure and international trade. 
  • Overall Development – The investment level, employment level, and income level of the country increases due to the operation of MNC’s. Level of industrial and economic development increases due to the growth of MNCs.
  • Technology – The industry gets the latest technology from foreign countries through MNCs which help them improve on their technological parameter.
  •  R&D – MNCs help in improving the R&D for the economy.
  • Exports & Imports – MNC operations also help in improving the Balance of payment. This can be achieved by the increase in exports and a decrease in the imports.
  • MNCs help in breaking protectionism and also helps in curbing local monopolies, if at all it exists in the country.
View Answers

You're just one step away


Single Correct Medium Published on 18th 08, 2020
Next Question
Questions 244558
Subjects 8
Chapters 125
Enrolled Students 300
Enroll Now For FREE

Realted Questions

Q1 Subjective Medium
Answer the following question in $$2$$ or $$3$$ sentences.
What is privatisation?

Asked in: Business Studies - Private, Public and Global Enterprises


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q2 Single Correct Medium
Feature(s) of a public corporation is/are ____________________.
  • A. It can sue and be sued and can enter into contracts in its own name.
  • B. The public corporation is wholly owned by the Central and/or State Government(s).
  • C. It enjoys financial autonomy.
  • D. All of above

Asked in: Business Studies - Private, Public and Global Enterprises


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q3 Subjective Medium
Distinguish : 
Secretary of Government Dept. and Company Secretary.

Asked in: Business Studies - Private, Public and Global Enterprises


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q4 Single Correct Medium
Minimum number of members in case of private company is ____________.
  • A. $$1$$
  • B. $$2$$
  • C. $$3$$
  • D. $$5$$

Asked in: Business Studies - Private, Public and Global Enterprises


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q5 TRUE/FALSE Medium
State the following statements is True or False:
The meeting which held once in the life time of a public company is the statutory meeting.
  • A. True
  • B. False

Asked in: Business Studies - Private, Public and Global Enterprises


1 Verified Answer | Published on 18th 08, 2020

View Answer