Economics · Oct / Nov 2022 · Paper 13 · Question 30
2281Globalisation and trade restrictions
What may be a cost to its home country when a multinational company (MNC) expands abroad?
- AIncreased competition from the MNC may force firms in the host country to close.
- BMany jobs created by the MNC may be low-skilled.
- CThe MNC’s profits from the host country may be sent to its home country.
- DThe MNC may cause job losses in its home country by moving production abroad.
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Correct answer: D. The MNC may cause job losses in its home country by moving production abroad.
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