Foundation
Social Science Foundation
Globalisation and the Indian Economy
Money and Credit
Question
Which of the following ways MNC's do to reduce the cost of production
and earn more profit?
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Solution
- The industries of developed country get latest technology from foreign countries through MNC's.
- The investment level, employment level, and income level of the developing country increases due to the operation of MNC's.
- They can reduce imports and increase exports due to
goods produced by MNC's- balance of payment.
- Greater availability of products for local consumers MNC's break protectionalism, curb
local monopolies, create competition among domestic companies- enhance
their competitiveness.
Hence, correct answer is option D.