What does USP stand for?
Unique Selling Point.
What are the dual effects of MNCs?
MNCs can have both positive and negative impacts. Positively, they can bring investment, jobs, and technology to host countries. Conversely, they can outcompete local businesses, exploit labor, and repatriate profits, potentially harming the local economy.
Do MNCs only have positive impacts in host countries?
False. While MNCs can contribute to economic growth, technology transfer, and job creation in host countries, they can also lead to environmental degradation, exploitation of workers, and can outcompete local businesses potentially harming the local economy.
Can MNCs operate in just one country?
No, MNCs operate in more than one country.
What does MNC stand for?
Multinational companies.
How can a multinational company's profits affect the host country's economy?
Multinational companies may pay local taxes; however, they often repatriate a significant portion of their profits, limiting the economic benefit to the host country.
How might multinational companies impact a host country's infrastructure in the short term?
They often help build infrastructure, like roads leading to their factories and schools for their workers' children.
How do MNCs influence product variety in a host country's market?
Multinational companies can augment product diversity in a host country's market by introducing new goods, potentially enhancing consumer choices.
What risk does the presence of multinational companies with short-term plans pose to host countries?
Short-term plans of MNCs can lead to sudden exits from host countries for cheaper options, risking economic instability.
How does the presence of a multinational company affect domestic producers?
Domestic producers may lose market share as multinationals expand in local markets, possibly due to the MNC's financial resources, global experience, and economies of scale.