Note AcademyNote Academy

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?

  1. AIncreased competition from the MNC may force firms in the host country to close.
  2. BMany jobs created by the MNC may be low-skilled.
  3. CThe MNC’s profits from the host country may be sent to its home country.
  4. DThe MNC may cause job losses in its home country by moving production abroad.

As printed in the paper

Show the answer

Correct answer: D. The MNC may cause job losses in its home country by moving production abroad.

Make a free account to save your answers and see your weak topics and ask the AI why a wrong answer is wrong.