Business Studies

Which of the following statement is incorrect?
$$(1)$$ MNCs have less impact on the development process of the under developed countries.
$$(2)$$ Some MNCs may be 'footloose' i.e., to say - they might locate in a country to gain the tax or grant advantages but then move away when these run out.
Select the correct answer from the options given.


ANSWER

$$(1)$$ only


SOLUTION
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 its productive capacity.
View Full Answer

Its FREE, you're just one step away


Single Correct Medium Published on 18th 08, 2020
Next Question
Questions 244531
Subjects 8
Chapters 125
Enrolled Students 145
Enroll Now For FREE

Realted Questions

Q1 TRUE/FALSE Medium
The management and administration of the government company rests in the hands of the government.
  • A. True
  • B. False

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


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q2 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
Q3 Single Correct Medium
A government company is any company in which the paid up capital held by the government is not less than _______.
  • A. 49 percent
  • B. 51 percent
  • C. 50 percent
  • D. 25 percent

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


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q4 Assertion & Reason Medium
ASSERTION

A transferee of shares cannot sue the promoters of a company for misinformation in the prospectus.

REASON

The information provided by the company promoters in the prospectus is addressed only to the original allottees.

  • A. Both Assertion and Reason are correct and Reason is the correct explanation for Assertion
  • B. Both Assertion and Reason are correct but Reason is not the correct explanation for Assertion
  • C. Assertion is correct but Reason is incorrect
  • D. Assertion is incorrect but Reason is correct

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


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q5 Single Correct Medium
Forms of mixed economy consists of __________.
  • A. Public Sector
  • B. Private Sector
  • C. Co-operative Sector
  • D. None of the above

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


1 Verified Answer | Published on 18th 08, 2020

View Answer